Lancashire County Council is set to be led by the Labour Party being supported by the Liberal Democrats in a minority administration.
An agreement has been reached by negotiators from the two groups and the matter will now be put to meetings of each group before the annual meeting of the full council on Thursday.
It is at the annual meeting that the council must appoint its new leader.
The council held elections on May 2, after which no party had gained the 43 seats necessary to take full control.
Since then negotiations have been ongoing to decide how the authority will be run.