It's the latest development in an ongoing struggle over a budget shortfall.
Mayor Cherelle Parker, City Council President Kenyatta Johnson and Superintendent Tony Watlington held a news conference to make the announcement on Wednesday afternoon.
They say the school district and City Council found a dedicated recurring funding source to help save 340 jobs.
Those jobs were on the chopping block come fall.
Last week, City Council approved a one-time $48 million allocation for the district, which did not guarantee a long-term solution.
This is a developing story and will be updated.