In SoHo, a truce may be imminent in one small battle between art and commerce.

Subject to approval by the Landmarks Preservation Commission, the owner of 599 Broadway has agreed to restore a minimalist sculpture by the artist Forrest “Frosty” Myers to the north wall of the building. In exchange for maintaining the sculpture in perpetuity and illuminating it at night, the owner would be allowed to sell limited advertising space below the sculpture. The commission will hold a hearing on the agreement on Tuesday.

Mr. Myers’s sculpture, “The Wall,” was commissioned in 1972 by City Walls, an organization that later became the Public Art Fund. The wall of 599 Broadway, on the southwest corner of Broadway and Houston Street, is in fact an interior wall of a building that used to stand to the north of it, which was demolished when Houston Street was widened in 1944. Inspired by the 42 exposed channel braces, Mr. Myers attached to them aluminum bars that projected several feet out of the wall. The wall was painted blue and the projections green. The result made many wonder whether they were looking at an artwork or simply the exposed structure of the building.

“The owner at the time said he liked it, even if he didn’t understand it,” Mr. Myers said.

He has had to fight several subsequent owners to preserve “The Wall.” In 1997, the current owner, the board of the Soho International Arts Condominium, sought permission to remove the sculpture in order to make repairs and then to sell the space for billboard advertising. Several artists, including Mark di Suvero, John Chamberlain, and Frank Stella, came forward to defend “The Wall,” and the Landmarks Preservation Commission denied permission to remove it, saying the artwork was landmarked, even though it was not mentioned in the 1973 report that designated the area a historic district.

The condominium board sued the city. In 2002, while the suit was in process, they were allowed to remove the sculpture to repair the wall. In 2005, the owners won the suit: A judge ruled that it would be an unconstitutional taking of property to require them to keep the sculpture and therefore be deprived of advertising revenue, which could be as much as $700,000 annually.

Instead of appealing, Mr. Myers’s pro bono lawyer, Sherman Kahn of Morrison & Foerster, sought a settlement. Under the compromise reached by Mr. Kahn, the owner’s counsel, Michael Sillerman of Kramer Levin Naftalis & Frankel, and the lawyer for the city, Virginia Waters, the owners would reinstall the sculpture higher than it was previously situated to protect it from damage, pay all costs of restoration and maintenance in perpetuity, and illuminate it at night. In exchange, they would be allowed to sell four 8-by-18-foot panels of advertising near street level. In addition, the owners have agreed that, if in the future someone stepped forward to cover the value of the advertising, they would remove the ads permanently.

Mr. Myers said that provision ––as well as the agreement to elevate the sculpture and light it –– made the deal acceptable to him.

“We have a really good lighting designer,” he said. “One of the things she’s lit is the Parachute Jump at Coney Island, which is one of my favorite objects in the world.”

Ms. Waters, while emphasizing that the deal is not final until approved by Landmarks, said she was pleased that the parties were able to reach agreement. Under the settlement, she said, there’s “no threat” of “The Wall” ever being removed. “This a restrictive covenant,” she explained. “It will be filed with the county clerk’s office, and it will run with the deed. Any new building owner will have to agree to keep the sculpture.”

Mr. Sillerman called the settlement “a very reasonable compromise that, in a balanced way, protects the major concerns of all of the parties.”