Brexit negotiations will now move on to a second phase on trade talks after the EU said "sufficient progress" had been reached.
An early morning meeting in Brussels between UK PM Theresa May and EU Commission President Jean-Claude Juncker followed all-night negotiations.
The deal will guarantee no 'hard border' in Ireland.
Speaking from Brussels Mrs said the integrity of the UK will be maintained.
"In Northern Ireland we will guarantee there'll be no hard border, and we will uphold the Belfast Agreement.
"And in doing so, we will continue to preserve the constitutional and economic integrity of the United Kingdom".
"Getting to this point has required give and take on both sides.
"I very much welcome the prospect of moving ahead to the next phase to talks about trade and security, and to discuss the positive and ambitious future relationship that is in all of our interests".
Mr Juncker said: "I will not hide that in between Monday and this morning we had a lot of talks: the prime minister and myself, the Taoiseach and myself, the Taoiseach and the prime minister.
"That's the reason why I would like to that the prime minister for (their) determination.
"We discussed the joint report agreed by the two negotiators - Prime Minister May assured me that it has (the) backing of the UK government.
"On that basis I believe we have now made the breakthrough we need.
"Today's result is of course a compromise".
In a tweet, Tánaiste Coveney said: "Deal Confirmed! Ireland supports Brexit negotiations moving to Phase 2 now that we have secured assurances for all on the island of Ireland - fully protecting GFA, peace process, all-Island economy and ensuring that there can be NO HARD BORDER on the Island of Ireland post Brexit."
Deal Confirmed! Ireland supports Brexit negotiations moving to Phase 2 now that we have secured assurances for all on the island of Ireland - fully protecting GFA, peace process, all-Island economy and ensuring that there can be NO HARD BORDER on the Island of Ireland post Brexit
— Simon Coveney (@simoncoveney) December 8, 2017
The DUP - which is propping up Mrs May's government in London - objected earlier this week to what is known as "regulatory alignment" between Northern Ireland and the Republic, which the party claimed would mean maintaining a soft border and a new frontier with the UK mainland in the Irish Sea.
In response to Friday morning's announcement, DUP leader Arlene Foster said: "Upon receipt of the draft text on Monday, the Democratic Unionist Party indicated to the Prime Minister that we could not support it as a basis for moving forward.
"Since then we have intensely engaged with the government right up until the early hours of this morning to secure changes to the document, mindful of the significant issues at stake for the future of Northern Ireland and the United Kingdom as a whole."
According to a statement from the DUP, contained within the new text are commitments that:
- Northern Ireland will leave the European Union along with the rest of the United Kingdom.
- Northern Ireland will leave the single market and the customs union along with the rest of the United Kingdom.
- There will be no customs or trade border down the Irish Sea between Northern Ireland and the rest of the United Kingdom.
- Northern Ireland will not be separated constitutionally, politically, economically or regulatory from the rest of the United Kingdom
- There will be no so-called ‘special status’ for Northern Ireland