Tottenham have accepted a "significant" cash settlement from Chelsea that allows sporting director Frank Arnesen to move to Stamford Bridge.
Spurs had threatened to report the Premiership champions for an illegal approach unless they received a suitable offer by 1200 BST on Friday.
But the White Hart Lane club finally confirmed they had reached an agreement "in principle" at 2254 BST.
The terms are confidential but a figure of between £8m-£10m has been suggested.
Chelsea are understood to have been ready to offer defenders Robert Huth and Glen Johnson as part of a financial package aimed at dissuading Spurs from lodging a complaint.
However, Spurs were not prepared to accept any players who did not serve the best interests of the club.
Chairman Daniel Levy had insisted that only a "fair settlement" would be acceptable and it is understood Chelsea's significant offer met with his high expectations.
Arneson, formerly with PSV Eindhoven, arrived at White Hart Lane in May 2004, replacing David Pleat as director of football to oversee a new continental-style arrangement with Jacques Santini as coach and Martin Jol as his assistant.
Former French national boss Santini left less than three months into the season, amid rumours of a strained relationship with Arnesen.
Jol was promoted to head coach and enjoyed a harmonious partnership with the Dane, with Spurs signing a host of promising young players, many of them British, and narrowly missing out on a European place.