A joint letter from the four associations was sent to FIFA this morning saying Scotland, Wales and Northern Ireland would have no involvement in the Olympic tournament but would not prevent an England team from doing so.
The deal will have to be ratified by FIFA before it is officially confirmed.
As revealed last night, last-ditch talks between the Scottish, Welsh and Northern Irish FAs yesterday led to a breakthrough in the long-running saga.
A source at one of the three associations said: "All four associations have signed a letter of intent and that has gone off to FIFA.
"The letter says that we, the three home nations other than England, have not changed our stance but as England are hosting the Games we believe it is possible for them to play under their own auspices."
FIFA had set a deadline of the end of the month for the four home nations to come to an agreement over Olympic representation.
FIFA president Sepp Blatter had already made it clear he would accept an English side representing Britain but had warned the other three associations from becoming involved in case it threatened their separate status in the future.
Today's deal should see the end of a bitter dispute over the Olympic football teams that has raged since 2005 when London won the right to host the Games.
The turning point came this week when the SFA board softened their stance against any move to allow an Olympic team after testing the water internationally.
The feedback was that there was a danger of their intransigence causing them damage in international football circles. Tweet
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Every time the Scottish, Welsh and NI FA's have spoken to Blatter on maintaining their individual sovereignty as a seperate footballing nation they have come away feeling very very nervous as old Sepp says the MOST important thing is the players PASSPORT. If it is a French passport he plays for France etc etc. This worries all concerned as there is (obviously) no such thing as an English, Welsh, NI or Scottish passport. I wouldn't put it past the old fa*t to say "Right one team from GB only". Him and Platini hate our guts anyway so he wouldn't support us, we are the Millwall of europe lets face it. The move to field an English team in the Olympics is very wise for this reason. The moment we field Team GB in football the remaining football nations will demand that going forward it be Team GB in the World Cup / Euro cup etc...Keep our heads down at least while Blatter is in charge and until someone who is not totally gaga in charge.