“Today’s agreement is the result of sensible compromises by both parties,” said Cricket Australia chief James Sutherland, adding that the “core issues” had been worked out.
He added that it would “restore much certainty to the game of cricket”.
“It will allow all players – state and international players – to be contracted immediately and it will also allow the all-important tour of Bangladesh to proceed as planned.”
At the heart of the dispute has been the divisive issue of revenue-sharing, a model that was largely retained under the new deal.
The bad-tempered stand-off has been rumbling for months, rattling the game and badly straining the players’ relationship with the governing body.
It left 230 cricketers unemployed since the end of June when their contracts expired, putting the Test tour to Bangladesh this month under serious threat.
But Steve Smith will now lead his team to Dhaka on August 18, with a one-day tour to India in September and October and the showpiece home Ashes series against England, beginning in November, also now safe.
An Australian A tour to South Africa last month was called off after players announced a boycott.
“Relationships with the game have been tested and I know that has been a bit of a turn-off for fans,” added Sutherland.