The announcement was made today, prior to a High Court case which had been scheduled for this week.
Hammerson subsidiary RT Group Property Investments said it had reached an agreement to allow Bandol Estates – the company which occupies the Light Bar – to continue its lease of the building.
The pair have been battling over the site since Hammerson revealed it planned to get rid of the building and replace it with an office tower.
In August Hackney Council deferred planning approval on the scheme and told Hammerson to look at possible ways of incorporating the bar into their proposal.
Under the agreement Bandol Estates will remain in occupation of the 233 Shoreditch High Street site, but the parties will continue discussions as to how Hammerson could support the company in finding an alternative location for its business in the Shoreditch area.
Hammerson managing director Martin Jepson said: “We are pleased that we have reached a mutual agreement that seeks to find a new location for the business. We recognise that Bandol Estates runs a popular venue and the agreement we have reached will enable it to continue to operate from its current location for the immediate future.
“Both businesses are important stakeholders in the area and the resolution demonstrates commitment from both sides towards continued regeneration benefits for Hackney. Hammerson remains committed to developing Bishops Place and the agreement enables us to continue our proposals for this important regeneration project.”
Bandol Estates director James Goff said he was also happy with the arrangement.
He said: “We are pleased that in the immediate future The Light Bar and its 50 loyal staff will continue to operate from the current location and we, alongside Hammerson, have some time to find a solution to continuing the business going forward.”