(RTTNews) -  Friday, casino operator MGM Mirage (MGM: News ) and estranged partner Dubai World is said to have reached a preliminary agreement to complete the construction of Las Vegas casino resort project, CityCenter, a WSJ report said.  

City Center project is a luxury residential, resort and retail complex with an estimated cost of $8.7 billion and is owned by City Center Holdings LLC, a joint venture equally owned by MGM and Infinity World. The project is being developed on 67 acres between the Bellagio and Monte Carlo resorts on the Las Vegas Strip. The project includes construction plans for several casinos, hotels, a retail strip and other office and residential buildings.

Dubai World has been withholding up to $135 million payments for the project and filed a lawsuit alleging a breach of contract and cost overruns due to mismanagement, following MGM’s statement on its 10-k filing that “there is substantial doubt about our ability to continue as a going concern.” 

Infinity World had contributed $4.3 billion to the project and owns 50% of it. The complex has been under construction since 2005. Dubai World also owns about 9.5% of MGM Mirage shares.

Hurt by the global financial downturn, MGM Mirage was previously struggling to find the required funding for the City center project. 

On Friday, MGM Mirage which is struggling under more than $13 billion in debt stated that, as permitted under the terms of the company’s previously announced amendment of its senior credit facility, it has provided $70 million to cover the current construction costs for CityCenter. The payment includes $35 million owed by Dubai World subsidiary Infinity World.

The tabloid indicated that both parties have not inked the preliminary agreement so far and final terms are still to be worked out. The agreement, if any, needs project lenders approval as well. The agreement details are unknown. 

Referring to a person close to Dubai World, reports said the two parties are now in touch with lenders led by Bank of America, Deutsche Bank, and Royal Bank of Scotland. Dubai World, a week earlier, requested a firm commitment from lenders guaranteeing allocation of funds needed to complete the project, apart from calling for the release of $1.8 billion loan without the need for another set of construction payment from both the project owners.