The state has promised to limit its use of solitary confinement in prisons in response to a lawsuit by the New York Civil Liberties Union.
The NYCLU says it is suspending its class-action lawsuit after months of negotiations.
The Department of Corrections and Community Supervision will no longer isolate prisoners who are pregnant, developmentally disabled or under the age of 18.
The state will also adopt sentencing guidelines and set maximum limits on how long prisoners can be isolated.
The NYCLU says it will finalize the agreement in two years, as long as the state follows through on reforms.