Detroit Emergency Mayor Kevyn Orr, appointed by the state government, and Mike Duggan, elected mayor in November, say they have reached an agreement on running the bankrupt city, with Duggan in control of roughly two-thirds of municipal operations.
A formal announcement will be made Thursday, the News said.
Sources cited by the newspaper as familiar with the plan describe Duggan's role as "chief operating officer," though officially he will be mayor.
Duggan will be in charge of all city functions not directly related to the bankruptcy process, including the finance department and contract negotiations with labor unions and pension boards. The city's fire and information technology departments will also report to Duggan.
Duggan gains more authority than expected when negotiations began, the newspaper said, since the state's emergency manager law strips most powers from elected officials and allows the emergency manager to determine what responsibilities elected officials will maintain.
It added the deal will allow Orr to concentrate on dealing with creditors and to restructure the city's $18 billion debt.