Mauritius' President Ameenah Gurib-Fakim will resign after next week's independence day celebrations on 12 March – thus evading her impeachment by the government.
The announcement was made by Prime Minister Pravind Jugnauth.
Mr Jugnauth said that they arrived at a compromise – but has not revealed a date, adding that it would be before the resumption of parliament scheduled on 27 March.
"The president of the republic has told me that she will resign from her position," Mr Jugnauth said.
"We have agreed on the date but I will not announce it.
"The interest of the country comes first, and I am proud of Mauritius' image as a model of living democracy in the world.
"It is important that we celebrate our 50th anniversary of independence, with serenity as one nation, a united people, and be proud of our homeland."
India's president will be the chief guest at next week's celebrations along with dignitaries from other nations, and the government want to give a welcome to all its guests.
Opposition parties say they will boycott the celebrations should the president be still in power.
Former Prime Minister and Labour Party leader Navinchandra Ramgoolamsaid this compromise was unacceptable:
"It's as if we are telling a supporting actress to go but the lead actors are here. There is not only one culprit in this mega-scandal.
"There are many questions," he added. "How did billionaire Alvaro Sobrino came to Mauritius? Who facilitates his access?
"It does not only concern the president – there are many ramifications."