McDonald's has dropped legal action against protesters targeting the site of a new Victorian restaurant.
McDonald's Australia and the "Tecoma 8" protesters reached a settlement after being ordered to go to mediation by a Victorian Supreme Court judge.
Residents have staged a series of protests at the Tecoma site, east of Melbourne, which delayed the start of construction by a number of weeks.
McDonald's has agreed to drop the legal proceedings and will not seek any legal costs from the eight protesters.
The protesters have agreed not to trespass or create nuisance at the site until June 30, 2014, a joint statement released on Thursday said.
"The order sought will allow the defendants and those they represent access to the footpath in front of the site except for the purpose of engaging in trespass, nuisance or harassing or intimidating people on the McDonald's land," the statement said.
McDonald's had already dropped a claim for damages from the eight protesters over the costs brought about by the delays and now won't pursue its court action seeking legal costs and a permanent injunction at the site.
The settlement is subject to a judge's approval.
McDonald's says it will continue to build a restaurant at the site and protesters say they will continue to protest peacefully.
McDonald's says it has approval to build the restaurant and much support from within the community.
"We have followed due process every step of the way, the area is appropriately zoned, we have an approved planning permit and we have been progressing with construction and will continue to do so," McDonald's said.
Protest group spokesman Garry Muratore says the protesters will continue to protest at the site peacefully.
"The greater group are relieved McDonald's have seen sense to drop this legal action," Mr Muratore said.
"It's a weight off the shoulders of the people that were facing big money and it frees the way for us to peacefully and lawfully protest the site.
"The eight protesters facing legal action ran the risk of losing their houses. There were many sleepless nights."
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