The clubs began the ground-sharing arrangement in 2006
Nottingham Rugby Club have agreed a seven-year deal with Notts County to play their home matches at Meadow Lane.
The rugby club have been playing there since 2006 but were told they were no longer welcome to groundshare by Notts' previous owners Munto in July.
Nottingham had to go to the High Court to continue to play at Meadow Lane.
But recent financial problems mean that the football club's new owner Ray Trew was keen to agree a long-term deal which guarantees much-needed revenue.
As part of the groundsharing deal, Nottingham Rugby have agreed to drop their legal claims against County over an unpaid bill of £37,000 legal costs resulting from the High Court appearance.
We've always maintained that the best way forward for both clubs is to develop a strong working partnership
Nottingham chairman Alistair Bow
The Green & Whites were also making a substantial claim for damages.
Nottingham chairman Alistair Bow said: "At long last we can begin to build a future, and we'll be forever grateful to Ray Trew and his colleagues.
"The past eight months have been totally wasted. Everything has been on hold because we really didn't know if we had a way forward, and there's no doubt that it has caused us to lose supporters and sponsors - and created massive financial problems.
"The whole experience has been very traumatic and because of all the uncertainty, we have been pretty much living from day to day.
"But I'm relieved to say that's now all in the past and having met with a totally different attitude from Ray Trew and Jim Rodwell, we are very excited about where this new relationship might lead.
We've tried to build bridges and Nottingham Rugby is the first step in building those bridges
Notts County chairman Ray Trew
"We've always maintained that the best way forward for both clubs is to develop a strong working partnership, and I'm delighted to say that the new owners of Notts County share this view.
"They obviously have massive problems to contend with at the moment and I really hope they can find a way through them. County supporters can rest assured that their club is in good hands, and we will support them wherever possible."
The seven-year groundsharing agreement officially starts in June of this year, but the Magpies face a winding up petition from HM Revenue & Customs on Wednesday over an unpaid tax bill of £324,000.
Trew told BBC Radio Nottingham: "When we first took ownership, Notts County was marooned on a little island. We've tried to build bridges and Nottingham Rugby is the first step in building those bridges."