Energy and Resources Minister David Llewellyn made the announcement, which is expected to save about 150 forestry contractor jobs, at a meeting of industry representatives at Campbell Town.

Mr Llewellyn said a number of issues were discussed at the meeting and another meeting would be held next week.

The agreement came after the forestry industry was thrown into disarray when Gunns announced the temporary closure of its Tamar Valley mill at Longreach for up to eight weeks.

At the time Mr Llewellyn, Gunns chief executive Greg L'Estrange and a number of contractors blamed the closure on lack of markets for woodchips.

There were also industry- wide concerns that the Longreach mill would stay closed for much longer and be followed by the Triabunna mill.

Last month Mr Llewellyn, along with Gunns chairman John Gay and Forestry Tasmania chief executive Bob Gordon, went to Japan to talk to longstanding woodchip buyers about future sales.

"I am pleased this outcome has been reached and expect it to allow forest contractors facing a lack of work in the coming weeks to continue working," Mr Llewellyn said.

He did however admit that there were long-term issues facing forest contractors.

"We will continue working toward a solution," he said.

"We continue to face the problem of having had a drop in woodchip exports to Japan due to anti-forestry groups undermining the industry by targeting Tasmania's customers with misinformation.

"In the meantime, I look forward to forest contractors being able to keep working to supply this new arrangement while the other issues are discussed."

Mr Llewellyn said there were "some logistical matters that still need to be managed to allow this new agreement to be finalised, but I am confident this will be done as a priority".