The three parties to a federal lawsuit agreed late Friday to terms that would likely allow off-road driving at the popular park while providing more protection for wildlife.

The agreement will end a tense, months-long legal battle that has pitted environmentalists against the area's residents and business community.

The deal could still fall apart, said Derb Carter, an attorney with the Southern Environmental Law Center.

Commissioners for Dare and Hyde counties and members of the Cape Hatteras Access Preservation Alliance have until Wednesday to vote on the terms, Carter said.

John Couch, a key figure in the negotiations and president of the Outer Banks Preservation Association, said that his association will recommend approval -- signaling that the deal will stand.

"Bobby Outten, Dare County attorney, and Larry Liebesman of [law firm] Holland and Knight LLP, outside counsel for the defendant interveners, are very pleased that the parties have reached agreement in principle and will recommend to the interveners that the settlement be approved as soon as possible next week," Couch said.

The terms of the settlement won't be made public until the settlement is filed, Carter said.

If approved by the court, the settlement would likely allow some off-road vehicles on the beach, but it would also likely close key nesting areas during parts of the year. Those spots are also the most popular fishing spots, which generated much opposition.

At issue was whether driving on beaches at the Cape Hatteras National Seashore must be halted to protect the threatened species, along with a host of seabirds and sea turtles and what effect a ban would have on the economy and the area's way of life.

Environmentalists argued that limits on driving are the best way to protect the wildlife. Fishermen threatened not to return if they are not allowed to drive up to the beach to unload their gear. Island residents said the driving ban would hurt the local economy.

Carter, representing the National Audubon Society and the Defenders of Wildlife in the lawsuit against the National Park Service, said the agreement would be filed with or without the blessing of the local interests, but was hopeful they would agree.

"We are pleased to have all parties to the case at the negotiating table and in agreement in principle," Carter said in a news release.

Reached late Friday night, Couch said he hoped his group's board could act Monday. Outten has to run it by the Dare County commissioners, Couch said.

The lawsuit contended the government had long ignored federal laws requiring a plan to keep nesting birds and turtles safe from vehicles at the park.

And U.S. District Judge Terrence Boyle said April 4 that the environmental groups had a compelling case, but he gave the parties a week to submit a plan.

Attorneys worked late Friday evening to file for a continuance to Wednesday, giving the commissioners time to vote on the settlement.

(Staff writer Vicki Lee Parker contributed to this report.)

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