The City of Edinburgh Council has reached a settlement with contractors Bilfinger Berger and systems firm Siemens to allow work on the tram to re-start.
Negotiations have been ongoing between both parties since they entered a formal mediation process in March.
No details have been released regarding the settlement. Construction to St Andrew’s Square in Edinburgh city centre is due for completion in 2014.
Bilfinger Berger and Siemens was contracted to build the tram line from Edinburgh airport to Newhaven, but over-runs forced councillors to truncate the line.
Work is due to restart later this month.