After 30 hours of continuous negotiations the five parties, the DUP, Sinn Féin, the SDLP, the Ulster Unionist Party and Alliance broadly reached an agreement after British Prime Minister David Cameron upped his offer to close to the £2 billion package, which the parties had demanded to break the deadlock over issues on parades, the past and flags.
Welcoming the Agreement, Northern Ireland Secretary Theresa Villiers MP, said: "The agreement includes an entirely new and comprehensive approach to dealing with the past, which will serve victims better and open the road to deeper eventual reconciliation. The UK Government will contribute substantially to the cost.
"This is a historic agreement, giving us an agreed approach to some of the most difficult issues left over from Northern Ireland's past. It offers us a new start, and a far more hopeful future.
"But it will need continued hard work to ensure it fulfils its promise. For our part, we shall do all we can to see that that happens".
First Minister and DUP leader Peter Robinson said the agreement acknowledged that further work would be required on a number of the issues.
"Of course every one of us would have liked to have had a more comprehensive and complete agreement but this is as much and more than we have ever been able to do on these issues in the past," he said. "So it is a very significant agreement".
Sinn Féin leader Gerry Adams also indicated via Twitter that his parties negotiating team will be recommending the proposals to the party's Árd Chomhairle.
The Alliance Party also voiced its disappointed that a more comprehensive agreement couldn't be reached on parades and flags, speaking on Premier's 'News Hour', Christian MP for Belfast East and Alliance Party Deputy Leader Naomi Long said: Alliance went into those negotiations looking for a comprehensive agreement that would deal with a whole raft of issues.
That would deal with the debate around flags and parades which has cost Northern Ireland a huge amount of money as well as untold suffering over the last number of years, they've also polluted the political atmosphere."
"Whilst they seem like trivial issues when they are being discussed in that context, they are the ones that can destabilise the process. We're disappointed there hasn't been more progress during the talks on those issues."
Alliance Party Deputy Leader, Naomi Long: