European Union member states adopted a Franco-German compromise on Friday allowing Berlin to remain the lead negotiator with Russia on the Nord Stream 2 gas pipeline to Europe.
France, a pivotal player in the EU gas talks, had said earlier it would support European Union oversight of new offshore energy pipelines.
This had raised concerns in Berlin that resistance from other EU members could undermine plans for the undersea pipeline between Russia and Germany.
But Paris and Berlin now agree that chief responsibility lies with Germany, the "territory and territorial sea of the member state where the first interconnection point is located," according to a text seen by AFP.
The pipeline is due to emerge at the German Baltic port of Greifswald, from where gas will be distributed to other EU countries.
"There was indeed an agreement which was only possible thanks to close cooperation between France and Germany," German Chancellor Angela Merkel told reporters in Berlin when asked about Nord Stream 2.
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The compromise text replaces older wording stipulating the EU rules on gas imports will be applied by "the territory of the member states" and or the "territorial sea of the member states".
The new text was adopted as part of reforms for gas market rules at a meeting of EU ambassadors in Brussels.
"The French-German compromise was adopted pretty much unanimously," one diplomat told AFP.
Romania, current holder of the rotating EU presidency, said it "was given the mandate... to enter negotiations with the European Parliament on the amendment of the EU gas directive."
"The fact that the gas directive was then almost passed by consensus is also due to the growing displeasure among the EU states over the attempted US influence."
The draft compromise sought to tackle concerns over Ukraine saying: "We consider a (gas rules) directive in this spirit indispensable for a fruitful discussion on the future gas transit through Ukraine."