A man on a hunger strike outside Southern Response's Christchurch headquarters says an agreement has been made and the hunger strike is over.
Peter Glasson stopped eating last Tuesday after years of fighting with the government owned insurer.
His 1920s home, with rubble foundation, was badly damaged in the 2011 Canterbury earthquake and needs new foundations.
The stand off prompted government intervention, with Megan Woods, the minister for Greater Christchurch regeneration, asking the Residential Advisory Service's Darren Wright, to help find a solution.
Today in a joint statement, Mr Glasson and Southern Response said an agreement had been reached that would avoid any court action.
Instead both parties would enter an Alternative Dispute Resolution process, which involved binding mediation and eliminated the need to wait for a court date.
As a result, Mr Glasson ended his hunger strike last night, and he said he was looking forward to the issue being resolved very soon.
Southern Response's chief executive, Anthony Honeybone, said he was happy progress had been made.
"Southern Response is pleased that an agreement setting out the way forward has been reached with the Glassons, and that Mr Glasson has decided to end his hunger strike," he said.
"The Residential Advisory Service did a fantastic job facilitating the negotiations."