The Mayor's office and the Teamsters Union announced a tentative deal late Sunday that would reduce the number of horses and permanently move the carriages to Central Park.
Under the agreement, the number of licensed horses would drop from about 180 to 110 by December 1.
That number will eventually be reduced to 95 by the time a new stable is built in Central Park.
That stable is expected to be complete by October 2018, and will have room for 75 horses and 68 carriages.
Once the stable is finished, all travel and operations will be confined to Central Park.
There are still a number of issues to be ironed out, including how to compensate carriage drivers who will lose their jobs under the deal.