San Francisco will be home to the 49ers for at least the next four years.
The agreement between the City and the team would change the current lease between the two and give the team rent credits for deferred maintenance and safety at the stadium.
The move is also a step in improving the sometimes frosty relationship between the team and San Francisco. Current 49ers President Jed York and former San Francisco Mayor Gavin Newsom were known not to be the best of friends.
Interim Mayor Ed Lee said his first week on the job that he wanted to make sure he improved the City's relationship with the team. He also said he wanted to try and keep the 49ers in San Francisco.
But Thursday York spoke with KNBR's Gary Radnich and said while the team is awaiting for the NFL to resolve its labor dispute with its players, the team is still planning to move forward to build a stadium in Santa Clara by 2015.
Under the new agreement the 49ers could leave Candlestick Park a year early or trigger a series of one year lease renewals if the Santa Clara project is not completed in time.