After four days of deadlock, the compromise emerged from a five-hour meeting Friday evening of representatives from the US, European Union, Australia, Brazil, India, China and Japan.
It was then reviewed by ministers from some 35 countries.
Norwegian Foreign Minister Jonas Gahr Stoere says Norway will go along with the proposals.
The proposed settlement, brokered by WTO chief Pascal Lamy, calls for cutting limits of European farm subsidies by 80% and US payments by 70%.
The compromise proposal also involves cuts in tariffs on agricultural imports and on industrial goods.
Norwegian farmers fear the proposed tax cuts will mean the end of the Norwegian farming industry.