The City of Edinburgh Council is to be run by a coalition of SNP and Labour councillors.
Group leaders Adam McVey, for the SNP, and Cammy Day, for Labour, will sign a formal agreement on Friday.
Key parts of the agreement include the construction of 20,000 new affordable homes, investment in transport and the delivery of a City Region Deal.
The local government elections on 4 May resulted in no individual party having a majority in Edinburgh.
The SNP is the biggest party on the council but is well short of an overall majority.
It has 19 councillors, compared to 18 for the Conservatives and 12 for Labour. The Greens won eight seats, with the Liberal Democrats on six.
Mr McVey said: “”I am pleased that we have been able to reach this agreement, which will provide stable leadership for the Council moving forward.
“This administration will implement a progressive policy agenda which will have as our top priority the improvement of our core public services and dealing with the key issues that face the people of our Capital.
“As the city’s youngest ever Council leader, I’m keen to bring a new vision to our exciting and vibrant Capital. The SNP and Labour teams are ready to get to work for the city bringing an energetic, determined approach to address Edinburgh’s needs.”
Mr Day added: “Labour and the SNP can offer the strong partnership required to lead the Council, and we look forward to working together and putting Edinburgh first.
“Our vision has always been to progress projects and policies which benefit the citizens of Edinburgh and we will continue this throughout our term of office, working with our trade union colleagues and devolving decision-making to local communities as far as possible.
“I call on the Greens to join and support our vision of how we can unleash our city’s potential.”
Committee conveners are expected to be appointed at a meeting of Council on Thursday 22 June.