A giant container ship that had blocked Egypt's Suez Canal for nearly a week earlier this year will be released on July 7 following an agreement between authorities and the vessel's owners, the canal authority said Sunday.

A ceremony for the signing of the settlement agreement ending the dispute over the 400-meter-long Ever Given will be held on Wednesday, and the ship will be allowed to depart, the Suez Canal Authority's media office said by phone.

Earlier, Stann of London, the attorneys for the ship's owner and insurers said that a "formal solution" had been agreed upon and that preparations for its departure were being made.

Authorities had said, however, that they were eager to reach an out-of-court agreement and that the ship would be allowed to leave once such a deal is reached.

The ship was being held in the Great Bitter Lake about halfway along the canal.

(With input from agencies)