Negotiators from the teacher's union and the school board met Thursday night inside the district's administration building trying to head off a threatened walkout.
As the strike neared, an announcement was made.
"We have reached a settlement through the mediator, it's called a mediated settlement that both sides will be sharing with their constituents," Teacher Union President Diane Kernop told Action News late Thursday night. "I will take it back to the Association, [School Board President Howard Jones] will take it back to the Board."
The details of the settlement will be released once it is ratified.
The Montgomery County district has more than 5,300 students and about 440 teachers.