AfriForum's spokesperson Willie Spies told the Mail & Guardian on Wednesday the deal was struck at 8.30pm on Tuesday night after a day-long mediation on Friday.
"The settlement that has been reached provides for three things. Firstly, the ANC acknowledged that certain struggle songs contain lyrics that originate from a specific era in history which today can be hurtful to minority communities. Secondly, the ANC and Malema undertook to encourage and counsel their supporters and members to refrain from singing songs that could contain hurtful phrases. Thirdly, the parties committed to continued informal debate about cultural heritage and freedom," said Spies.
"As a result, the ANC abandoned its appeal and AfriForum and the Transvaal Agricultural Union abandoned the order granted by [the Supreme Court of Appeal] with all the parties consenting to the substitution of the … order with this agreement," he added.
The appeal court on September 27 wrote to the affected parties, asking that they explore the possibility of mediation, which was agreed to under the facilitation of Charles Nupen.
Last year, the struggle song containing the words "Dubul' iBhunu" (shoot the boer) was declared hate speech by Judge Colin Lamont in the South Gauteng High Court.
AfriForum took the matter to court after Malema continued singing the song at youth league rallies.
Lamont ruled the words used in the song were "derogatory, dehumanising and hurtful".
The judge interdicted all members of the ANC from singing the song in public or at private functions.