But a number of key issues remain unresolved, including disputed regions.
The two countries were pushed to the brink of war earlier this year.
After fighting over oil facilities and disputed land broke out, the United Nations threatened both sides with sanctions if they did not reach a comprehensive agreement.
Limited agreement African Union mediators have yet to confirm that an agreement has been made, but President Omar al-Bashir of Sudan and President Salva Kiir of South Sudan are expected to sign a deal on Thursday morning.
Few details were released, but negotiators for both sides said that a demilitarised border buffer zone between the two countries had been agreed.
They also said that an economic agreement had been reached to allow South Sudan's stalled oil production to be restarted.
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