Come January, Democrats will have control of the New York State Senate, State Assembly, and governor's office, now that all Democratic senators decided to back the party's leader Thursday.

Brooklyn State Senator Carl Krueger, Bronx Senator Ruben Diaz Sr., and Bronx Senator-elect Pedro Espada Jr. said they are prepared to back fellow Democrat Malcolm Smith as Senate president pro tempore when they convene next month.

Espada will assume the title of Senate majority leader.

After last month's election, Democrats in January hold 32 of the Senate's 62 seats, giving the party the majority for the first time since 1965.

But the so-called "Gang of Three" made a list of demands, saying that if they were not followed they could vote for current Republican Majority Leader Dean Skelos.

Diaz had called for a written pledge that state Senate Democrats would not push for gay marriage next year.

In another concession, a source close to Krueger says the Brooklyn senator will be named the chairman of the Senate finance committee.

None of the three lawmakers would say why they ended their rebellion, or if anything was promised to them by Smith at a meeting that was held today in a Manhattan.

Upstate businessman and political activist Tom Golisano and Queens Congressman Greg Meeks also attended the meeting.

"The main purpose of this meeting was having folks come down and having an honest conversation as to what is the best direction for the state to go in," said Meeks in a NY1 meeting.

A spokesman for Smith would only say that Smith agreed to rules changes that will "result in Senate reform."

While Governor David Paterson said he's pleased with the outcome, he said he's surprised the undecided Democrats did not hold out longer.

“Let me tell you something - if I had a deciding vote I might stretch it out till the last minute, because the longer you stretch it out the longer your price goes up," said Paterson.

Assembly Speaker Sheldon Silver applauded the deal.

“I hope collectively the legislators will show we can move this state forward, especially during these difficult times. We'll get things done," said Silver.

Skelos released a statement congratulating Smith, but his immediate predecessor had hoped for a different outcome.

“I am very, very unhappy about so many people that are displaced,” said former Senate Majority Leader Joe Bruno. “It’s a huge disappointment, of course.”

The Democratic majority will return to Albany next year with the main task of making cuts to close huge budget deficits.