
The annual Edinburgh Taxi Outing which began in the 1940s - takes children with additional support needs, life-limiting conditions and terminal illnesses for a day out - was shelved earlier this week after officers declined to provide a motorbike escort due to a "policy change".
Taxi drivers said that decision meant they could no longer guarantee the "safety and comfort" of the children due to the risk of becoming stuck in traffic.
But, following a meeting, taxi officials and senior officers have now agreed an "outline plan" for the drive which will allow the event to proceed as planned on 9 June.
A final decision is expected to be ratified during a meeting between the police, taxi outing organising committee and City of Edinburgh Council on Thursday.
Keith J Bell, organiser of the outing, previously said he believed Police Scotland had misinterpreted the rules.
But he said a "workable solution" had been found which would allow the event to go ahead following a meeting with the assistant chief constable.
He added: "I'm hopeful we will be able to finalise a plan that allows the event to take place, which will be great news for the children and families involved.
"I would like to thank everyone who contacted the police, their MP, their MSPs and others and the outing committee is deeply humbled by the love and support that has been shown by so many."
Police Scotland said "constructive discussions" had been held to ensure the outing was able to run on its original route.
Supt Neil Wilson said further discussions would take place to "finalise" the police operation and "ensure the children enjoy their day."
City of Edinburgh Council called an emergency meeting over the initial decision to cancel the event on Tuesday.
Local authority staff may be called on to help facilitate the event.
Council leader Jane Meagher said she was "overjoyed and relieved" that a solution had been found.
She added: "I know how valued and important this event is to families across the city and look forward to seeing the wonderful sight of brightly decorated taxis on our streets once again – in what I'm sure will be another fun-filled and memorable day out."

In June last year, the council’s licensing committee agreed to a 12-month trial that removed age limits for wheelchair accessible vehicles.

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