The Polish government approved the terms of the agreement the previous evening, according to PAP.
Polish Prime Minister Mateusz Morawiecki was expected to hold a joint news conference with his Czech counterpart in Prague later on Thursday.
The news came after Poland’s Environment Minister Anna Moskwa said last month that progress had been made in talks with the Czech government to end a stalemate over the disputed Polish brown-coal mine.
Moskwa made that comment after a meeting with her Czech counterpart Anna Hubáčková in Warsaw in January, telling reporters that a deal was in sight.
Earlier last month, the Polish government spokesman said that Warsaw was prepared to bear the cost of defending its Turów lignite mine after the European Commission urged Warsaw to pay its fines over the continued operation of the site.
The European Union's top court in September ruled that Poland must pay a EUR 500,000 daily fine to the European Commission, the EU’s executive arm, for defying an earlier order to halt operations at Turów, which is located near the border with the Czech Republic.
The Czech government last year filed for an injunction with the European Court of Justice, saying the Turów open-cast mine on the Polish-Czech border was draining groundwater away from surrounding areas and harming Czech citizens.