A confrontation between the Israeli government and the Supreme Court over the West Bank settlement of Migron was due to come to a head on Thursday, when the court was set to decide on whether it would stick to a previous order for the outpost to be evacuated by March 31.
A compromise deal, however, will see the Supreme Court allowing a delay in the evacuation of the illegal outpost until 2015.
Last Sunday, the outpost's 50 families signed a pledge that they will move their homes 2km away from the current site by November 30 2015. In return, the government has agreed that they will receive approval to build permanent houses on the new site.
Last week the State Prosecutor's Office petitioned the High Court of Justice to endorse this solution, setting the scene for a standoff between state and judiciary.
Peace Now General Secretary Yariv Oppenheimer said that if the court approves the compromise, it will set a dangerous precedent for all illegal outposts. "This awards a prize to those who break the law," he said.