The details are still being hammered out but will be announced in a few weeks.

Volkswagen has confirmed the company has reached an "agreement in principle" with several U.S. agencies including the Department of Justice, the Environment Protection Agency, and the California Air Resources Board.

The agreement was made with the involvement of the Federal Trade Commission and will be incorporated into a series of binding consent decrees by the Department of Justice and the aforementioned agency.

The terms haven't been released or necessarily even finalized but Volkswagen confirmed it has also reached an agreement on the "basic features" of a settlement regarding a class action lawsuit that was filed on behalf of customers affected by the Dieselgate scandal.  This particular agreement will be incorporated into a more comprehensive settlement agreement in the coming weeks.

The agreements are a positive sign but Volkswagen still faces a number of Dieselgate-related hurdles as company is subject of an ongoing criminal investigation by the Department of Justice and several state Attorney Generals.

In a short statement, Volkswagen of America said the company is "committed to earning back the trust of its customers, dealers, regulators and the American public."  The automaker went on to say the agreements are an an important step in making "things right" and noted customers do not need to take any action at this time.

Update: A transcript of today's court proceeding from the United States District Court has revealed the agreement covers approximately 480,000 vehicles equipped with 2.0-liter TDI engines.  The agreement will give owners the opportunity to sell their vehicle back to Volkswagen or have the vehicle fixed to become compliant with emissions regulations - subject to government approval and further testing.  Customers who leased a vehicle will be offered the opportunity to cancel the lease and return it to Volkswagen.

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Volkswagen has reached an agreement in principle with the US authorities

In connection with the diesel issue, Volkswagen AG confirms that an agreement in principle with the Department of Justice (Environmental Division), the Environment Protection Agency (EPA), and the California Air Resources Board (CARB), with the full involvement of the Federal Trade Commission (FTC), has been reached in the United States. This agreement in principle will be incorporated into binding consent decrees by the Department of Justice and the FTC in the coming weeks.

 Furthermore, Volkswagen has reached an agreement on the basic features of a settlement with the class action plaintiffs in the lawsuit in San Francisco. This agreement will be incorporated into a comprehensive settlement in the coming weeks.

The judge presiding over today's court hearing in San Francisco, Charles R. Breyer, expressly welcomed this development.

The arrangements in the making in the United States will have no legal bearing on proceedings outside of the United States.

Ongoing investigations by the Department of Justice, Criminal Division, and the State Attorneys General are not prejudiced by these agreements in principle.