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After fighting for years, the University of Oklahoma is now negotiating the terms under which it will return a Pissarro painting to a Jewish family whose relatives had their artworks looted by the Nazis.

The terms of any possible agreement are unclear, and the discussions may yet founder. But the negotiations are an abrupt turnaround in a case that drew wide attention. The university did not deny that the painting, “La Bergère,” or “Shepherdess Bringing in Sheep,” was part of a collection looted by the Nazis from a businessman, Raoul Meyer, but instead had raised objections to returning the work based on procedural rules and the statute of limitations. It had also produced evidence that the work had been bought by a subsequent owner in good faith. Raoul Meyer’s daughter, Léone Meyer, sued the university to recover the painting.

In an emailed statement, Anil V. Gollahalli, the University of Oklahoma general counsel, said: “Léone Meyer, the University of Oklahoma and the OU Foundation continue to negotiate a final agreement involving a painting by Camille Pissarro called ‘La Bergère.’ The settlement negotiations are ongoing and the parties are diligently working to reach a final agreement.” It said a formal announcement would be made once that agreement is reached, but offered no further comment.

Mr. Gollahalli was also quoted separately on the website of The Oklahoman as saying, “The parties have agreed to a mutually agreeable resolution in principle and are working through the details of formalizing that agreement.”

The Associated Press reported that the federal judge in the lawsuit had suspended activity in the case until Feb. 28 as the negotiations continue and after the parties had informed the court they had reached a compromise and a settlement.

The painting arrived at the University of Oklahoma in 2000 as part of a bequest to the Fred Jones Jr. Museum of Art.

Gideon Taylor, chairman of operations for the World Jewish Restitution Organization, said the Oklahoma case had wider symbolic importance.

“We hope that an agreement can be reached in this case,” he said. “For the sake of both justice and history, all American museums need to live up to both the letter and the spirit of commitments that have been made regarding how museums should deal with Holocaust-era looted art.”