The potential next leader of Cheshire East Council says a partnership to run the authority is expected in be in place for around 12 months.
The agreement between Labour and the Independent group comes after the May 2nd local elections resulted in no one party in overall control.
The Conservative group lost 19 councillors and its majority, and now has 34 members, while the Liberal Democrats have four councillors.
Labour has 25 members, and the Independent group has 19 councillors.
As leader of the Labour group Sam Corcoran is set to be elected as the leader of the authority at a full council meeting next Wednesday (22 May).
Councillor Craig Browne, Independent group leader, is expected to be chosen as deputy leader.
Labour are also set to take the majority of the cabinet places, after negotiation and agreement with the Independent group.
Cllr Corcoran said: "Labour recorded its highest ever number of votes, share of the vote, and the number of Labour councillors elected - 25.
Therefore, we have put into place a transition arrangement for the governance of the Council for the next twelve months with support of the largest Independent group.
"The agreement with the Independent Group will ensure that services continue to be delivered, provide re-assurance to staff and partners and enable us to start work on delivering Labour’s manifesto for Cheshire East."
The partnership will see a decade of Conservative rule come to an end.
In a post on his Facebook page, Cllr Mick Warren, Independent member for Macclesfield East, said: “The independent group of which I am a member and the Labour group have reached an agreement, in principle, to form a ‘transitional’ cabinet for a year whilst working towards the introduction of a committee system in May 2020.
“This delay is unavoidable due to any change in the system must start at the AGM in May and it is too short a period to do it in 2019.”