All sacked members of the Hawke's Bay District Health Board are to be reinstated and will work alongside a commissioner appointed to run the board.
The deal was sealed at a meeting on Thursday involving Health Minister Tony Ryall, Commissioner Sir John Anderson and the region's mayors.
Sir John will invite the sacked board to work with him on a governance board, until new elections in two years.
It follows an election promise by the National Party and ends a court battle that was instituted after the board was dismissed in February.
Former Health Minister David Cunliffe accused the board of bad financial management and poor relations with staff; particularly the chief executive officer, Chris Clarke.
The new board is to be known as the Hawke's Bay District Health Governance Board.
It will be chaired by Sir John and will also include three people who he had already appointed to work with him as deputy commissioners. They are Brian Roche, Ngahiwi Tomoana and Ian Brown.
This is the former DHB back in charge, with statutory powers, but headed by Sir John, a prominent businessman and DHB leader.
The first meeting will take place in February 2009.