Microsoft Corp. and the Justice Department have agreed on the outlines of a settlement in the long-running antitrust case against the software maker

Microsoft Corp. and the Justice Department have agreed on the outlines of a settlement in the long-running antitrust case against the software maker, according to sources who have been briefed on the matter. The sources cautioned that the wording of the agreement had not been finalized and that negotiations could still break down. But there is a strong push to reach a deal before the parties go back into court tomorrow to report on the status of the talks, sources said. Leaders of a coalition of state attorneys general who also are prosecuting the case are in Washington and spent much of yesterday evaluating the proposal, sources said. The states have taken a harder line against the company, and if they agree to the settlement, it could bring a sudden and remarkable end to one of the largest and most contentious antitrust cases in the country's history. Sources familiar with the negotiations said the proposed agreement would require Microsoft to give computer makers more power to determine how software applications are carried and displayed within the Windows operating system on personal computers. It also would set rules for how much of the company's computer code would have to be given to outside software firms and would establish a technical committee to review disputes about such disclosures, the sources said. The settlement would expire after five years if the company adheres to its terms, the sources said. If the company violated any portion of the agreement, it would extend another two years, sources said.