Central to any agreement is whether the council will consider removing or reducing a planned $800,000 development levy it wants to impose on the power company, which wants to build a 240MW wind farm on rural land 15km southeast of Gore.
TrustPower was granted consent for the Kaiwera Downs development by the district council in July but appealed to the Environment Court, with the levy its key issue.
It is also objecting to the membership of a community consultative group that will be formed to work alongside the power company both during and after construction.
Similar groups of affected residents have been formed during other wind farm applications.
The council decision excluded owners and occupiers of the wind farm site from the group and TrustPower wants them included.
It claims the council's financial contributions policy is unlawful and unreasonable, and "disproportionate to the adverse effects" of the wind farm.
Imposing the development levy also failed to properly take into account the positive effects of the wind farm, TrustPower said.
Gore council planner Keith Hovell yesterday said both parties had reached an agreement on the issues, and paperwork to that effect was now being drawn up by TrustPower's lawyers.
The details of the deal will remain confidential until the formal agreement is lodged with the court, a move expected to happen in about two weeks.
Both parties would issue a press statement at the same time, Mr Hovell said.
