The tentative deal will include building a $975 million stadium on the east side of the Vikings current home, the Metrodome.
At a news conference Thursday morning, Minnesota Governor Mark Dayton called the agreement a "remarkable accomplishment."
According to the deal, the Vikings and other private sources would pay $427 million of the construction costs. The state would pitch in $398 million and the city of Minneapolis would contribute $150 million.
The tentative agreement will now be introduced at the state legislature where the terms of the deal will be hammered out. The Minnesota legislature has until the end of April to work out a deal.
"Today is a big step forward in making this project a reality," said Vikings owner Zygi Wilf. "We look forward to bringing this project forward to the legislature."
However, even if the plan passes the legislature, one more obstacle remains in Minneapolis. The Minneapolis City Council still must approve the deal. Of the council's 13 members, seven have gone on record opposing the use of city money to build the Vikings a stadium.
If the stadium bill is approved, the Vikings will be required to play in the new stadium for 30 years. Also, because the stadium site is just east of the Metrodome, the team would play just one season at TCF Bank stadium, according to Ted Mondale, Metropolitan Sports Facilities Commission Chairman.
As for the stadium details, it will include a fixed roof and will be modeled after Lucas Oil Stadium in Indianapolis. The stadium will also include an outdoor plaza and would be able to host other events such as concerts, basketball games and other large-scale events. The stadium will also be used to help lure a Major League Soccer franchise to Minneapolis.