The interim committee led by chairman Arjuna Ranatunga and the Sri Lanka Cricketers' Association (SLCA) ending the dispute after four months of negotiations.
''Everything was resolved peacefully in a cordial atmosphere,'' SLCA's chief negotiator Graeme Labrooy told mediapersons here.
''The new pay slabs for the players were approved by Sri Lanka Cricket and there was good response from both sides. The players will sign their contracts next week,'' he added.
The new player contracts include a freeze in annual retainers for senior players but substantial increases for junior members of the national squad and A team.
Test match fees were also increased, bringing Sri Lanka's match fees in line with their Asian neighbours.
Players will not be banned from writing articles or for having media contracts, although both will be regulated by an existing Code of Conduct for all players.
The new contracts will come into effect from March 1 and will be valid until the end of February next year.