Feuding parties in the long-running, litigation-riddled battle over a planned development around North Lake said Thursday that they have reached a compromise to divvy up nearly 1,700 acres around the coveted Dallas lake.

Coppell officials said that as part of the agreement, which has yet to be finalized, pending lawsuits involving Coppell, its school district, developer Billingsley Co. and Dallas would be withdrawn. They all stem from Billingsley's plans for a massive mixed-use project on more than 500 acres it already owns.

This week's agreement is expected to give Coppell 475 acres of the land and the Coppell school district 122 acres. About 50 acres would be retained by current owner Luminant Energy, a subsidiary of Energy Future Holdings, formerly TXU, which has a power plant near the lake. Billingsley would end up with an estimated 1,043 acres, including the hundreds of acres it already owns.

Coppell officials heralded the agreement Thursday as an amicable end to a lengthy fight.

"I'm obviously relieved that this multi-year land dispute has ended in a positive way for all of the parties involved," Coppell Mayor Doug Stover said.

North Lake is just north of LBJ Freeway in northwest Dallas, connected to the city by a small strip of land. But the property borders Coppell and Irving, and most of the land is within the Coppell Independent School District.

Billingsley's initial plans for the mixed-use Cypress Waters development called for the project to have between 4,000 and 10,500 housing units, according to estimates.

Those plans drew ire from Irving, Coppell, and Coppell school officials who said the development would burden already-overcrowded campuses and stress traffic flows in the area.

Earlier this year, Billingsley bid on the additional acreage for sale around North Lake. Luminant then gave Irving and Coppell officials a chance to make their own bids.

"We wanted to do the right thing," said Allan Koenig, a Luminant spokesman.

Irving officials said they would not bid on the land but would support Coppell in whatever action it took. The Coppell City Council last month approved the issuance of $30 million in bonds to buy the land, but a city spokeswoman said Thursday that she did not think the city would end up spending that much.

Mr. Koenig said the energy company would sell the latest acreage to Billingsley, which would then sell the agreed-on portions to Coppell and the school district.

Sale amounts were not released Thursday. Coppell officials said because details were still being worked out, the amount of acreage each party winds up with could change. Luminant will maintain about 50 acres and will continue to operate an existing power station.

Coppell city officials said they will use their land for utility improvements, including a new water pump station and water storage unit. The city also plans to use the area for police and fire training.

Billingsley, Dallas and Coppell school officials could not be reached for comment Thursday.

According to a joint news release issued by the city of Coppell and the school district, Coppell ISD will use its land acquired in the deal for two elementary schools, a high school and additional administrative space. It was unclear Thursday how the agreement would change the scope of Billingsley's plans.

The release also said that Billingsley agreed to "cap the number of residential units in its Cypress Waters development at a reasonable density" if Irving provides utilities "through an agreement with Dallas."

That was news to Irving officials late Thursday. Irving City Manager Tommy Gonzalez said he and his staff have been following North Lake developments but have heard nothing about Irving providing utilities.

"I've gotten no formal request from anyone asking us to provide utilities," Mr. Gonzalez said.

Staff writer Jon Nielsen contributed to this report.