‘Modern Family’ Contract Deals Done

Resolution of salary dispute comes moments after co-creator Steve Levitan said it was close

The "Modern Family" cast has reached a deal.

A 20th Century Fox Television representative said late Friday that the dispute over their salaries had been resolved. Principal photography will proceed Monday as scheduled, and a lawsuit filed by the cast will be dropped as part of the agreement.

Getty ImagesTerms were not disclosed, but a person familiar with the negotiations told TheWrap that the cast will receive back-end payments as part of the deal.

The entire cast had sought pay raises for the Emmy-winning hit comedy, which is ABC's top-rated show.

Also read: Steve Levitan: 'Modern Family' Deal May Be Done By Monday (Exclusive)

The show's co-creator, Steve Levitan (left), said he learned the deal was done at a party at the Television Critics Association summer press tour.

"They're all deserving," he told TheWrap. "I'm extremely happy."

Asked what he believed led to the deal, he said, "reason, sanity."

"There's an inevitable place where deals come together," he said.

Also read: 'Modern Family' Cast Sues to Void Contracts in Salary Dispute

Levitan called the negotiations and lawsuit an "annoying distraction."

"Since May 15 or so, our writing staff has been busy writing, and that's what we want to do," he said. "And this led to a flood of phone calls and meetings. It was a distraction."

Negotiations turned hostile Tuesday when the cast refused to take part in a scheduled table read. Instead, all of the show's adult leads except for Ed O'Neill, who was negotiating separately, filed a lawsuit seeking to void their contracts. O'Neill joined the lawsuit in solidarity on Thursday.

He was the best known member of the cast at the start of the deal, and was better paid than castmates Julie Bowen, Ty Burrell, Jesse Tyler Ferguson, Eric Stonestreet, and Sofia Vergara.

The first sign that the standoff was thawing came when the cast agreed to take part in a table read Thursday. On the same day, ABC announced that the show would return Sept. 26.

On Friday, ABC Entertainment President Paul Lee said he was "optimistic" that a deal was near.

The announcement that it was complete came moments after Levitan told TheWrap that an agreement was close.

The deal ends an embarrassing feud for one of television's best-loved shows. It won two consecutive Emmys for best comedy and has helped ABC launch other shows, including "Suburgatory."