Patricia de Lille will reportedly resign as Cape Town mayor on Sunday.
The two politicians seemed relaxed and happy in each other's company after a fraught 13 months which has seen De Lille and the DA at war in court‚ disciplinary hearings‚ caucus and council meetings and numerous press conferences where they have flung dirt at each other.
De Lille is expected to stay on as mayor until August 31, during which time it is reported she would be expected to travel to the United States of America for a visit in her capacity as mayor.
De Lille stands accused of several allegations, including misconduct and bringing the party into disrepute.
"I am pleased to announce today that the DA and Patricia de Lille have reached a mutual agreement which resolves the question of the leadership of the DA government in Cape Town", Maimane said on Sunday.
The proposed open disciplinary hearings due to be held against her are expected to fall away.
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Maimane said: "This has been a long and hard journey".
De Lille, whose resignation is effective October 31, has been a mayor of Cape Town since 2011, and has a large support base among fellow mixed-race residents of the city. "The matter has already gone on for too long and has sapped the energies and attentions of both parties from our core work‚ for which we apologise".
De Lille said afterwards she would devote her remaining three months in the position to dealing with unfinished business - including tackling the pressing issue of land invasions in the city.
"We were both desirous of finding a mutually agreeable resolution, and we have now done so".
The DA terminated her membership earlier in the year following the now-infamous interview on Radio 702. "I am confident that this outcome is in the best interests of the people of Cape Town".
Maimane said the DA would immediately begin the process to elect a new mayor for Cape Town.