Shelby County and Memphis city leaders say have a deal that will keep International Paper's headquarters in Memphis.

The deal-follows threats by the Fortune 500 company to head south to Mississippi, if they didn't get the tax breaks they wanted.

Economic development officials are still ironing out some of the details, but International Paper, the city and county have agreed to a tax deal that will keep the Fortune 500 company and its 2,000 employees in Memphis for the next 15 years.

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"We think that we're going to have a long standing relationship with International Paper throughout the next several years," said Shelby County Mayor Mark Luttrell, whose office made the announcement Wednesday.

According to economic development documents obtained by FOX13 News, the local governments will agree to a pilot or payment in lieu of taxes on a new office tower and International Paper's existing office buildings. In addition to retaining the company's 2,000 jobs they will add another 100.

"What we've tried to do through this negotiation is to indeed work out an agreement where they benefit an we the citizens of Shelby County also benefit," Mayor Luttrell said.

Local government officials haven't revealed how much money this deal will cost the city and county. The finalized deal should be made public in the next few days.
 
Officials say the benefit of keeping the company rooted in Memphis is worth the costs.

International Paper pays its local employees more than $300 million a year -- and the company spends millions in the local economy.