President Mohammed Mursi of Egypt has agreed to allow the Mubarak-era chief prosecutor to keep his job after an embarrassing public row.
Spokesmen for Mr Mursi and the prosecutor, Abdel Maguid Mahmoud, confirmed an agreement had been reached at talks in the capital, Cairo.
Mr Mahmoud earlier returned to work, escorted by judges and lawyers.
He has been criticised for acquitting officials accused of attacking protesters under Hosni Mubarak.
Ill-feeling between supporters of the prosecutor and Mr Mursi's followers degenerated into fighting in Tahrir Square on Friday.
Scores of people were injured in the worst violence since President Mursi took office at the end of June.
The outcome is a big defeat for Mr Mursi, who until now has been steadily consolidating power, says the BBC's Jon Leyne in Cairo.
Under the old government, there was often criticism that judges and prosecutors were susceptible to government pressure. Our correspondent says they are now fighting hard to assert their independence from the new government.
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