The deal is currently being finalised with receiver KPMG and work is expected to restart on the stalled contract within days.
An Olympic Delivery Authority spokesman told the Enquirer: “Discussions are continuing with P Elliott’s receivers to allow work on this specific Village plot to resume as soon as possible.
“We intend to retain the current workforce allowing them to continue work on site under our development manager Lend Lease.
“This issue relates to only one of the 11 residential plots in the Village – construction work across the wider Village site remains unaffected and firmly on track.”
Construction union Ucatt has vowed to ensure Elliott’s 250 staff receive all their wages for work carried out for the firm.
Jerry Swain, Regional Secretary of Ucatt’s London and South East Region, said: “It is important that the parties involved move swiftly to guarantee that the workers will be fully paid and are able to quickly return to work.
“The workers should not suffer a financial penalty as a result of problems which are not of their own making.”