Earlier this week, Ed O'Neill, Sofia Vergara, Jesse Tyler Ferguson, Eric Stonestreet, Julie Bowen and Ty Burrell filed a suit against the studio in an effort to break their current contracts. The lawsuit will be dropped as part of the agreement.
When asked about the dispute at the TCAs on Wednesday, ABC President Paul Lee told reporters: "We did the table read, we are in the middle of negotiations. I don't want to talk about specifics. It's a wonderful show, that's a great cast and we're optimistic about it."
Principal photography of season four episodes will begin on Monday.