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DALLAS - Two sources from City Hall told News 8 that Dallas City Manager A.C. Gonzalez will approve Virgin America's lease of two gates at Love Field.

Attorneys for the airline and the city are still working through fine print of the deal, sources said, but it will likely be announced on Friday.

Virgin America is sub-leasing the gates from American Airlines through 2028. American agreed to give up its Love Field gates in a settlement with the U.S. Department of Justice so it could merge with US Airways.

The Justice Department rejected offers from Southwest Airlines and Delta Airlines to take over the gates.

Last month, in a highly-publicized event, Virgin announced it would move its operations from D/FW Airport to Dallas Love Field though it didn't yet have a signed agreement with American Airlines or the city of Dallas.

Virgin reached an agreement with American on Monday, according to Sir Richard Branson, founder of The Virgin Group.

Though the city manager made the decision, Gonzalez had the council briefed on the situation.

Dallas-based Southwest Airlines is still lobbying the city for the gates, though it does not have a deal under consideration.

Virgin pledged to add New York, Washington D.C., and eventually Chicago to the Los Angeles and San Francisco flights it already has at D/FW.

Branson even came to Dallas this week in a lobbying effort to help finalize the deal.

E-mail jwhitely@wfaa.com

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