THE feud between loggers and greenies will end in Tasmanian parliament today with news an agreement has been reached.

Both the ABC and The Australian say environmental and industry groups have agreed to reserve more than 500,000ha of forest and reduce the amount of sawlogs available for loggers to about 140,000 cubic metres.

Around 400,000ha of forest will be placed into reserves immediately, including large tracts of the Styx and Upper Florentine, followed by about 108,000ha a year later.

While the government is remaining tight-lipped, Opposition Leader Will Hodgman said it was total victory for the Greens and will make logging a cottage industry.

"It gives the Greens everything they want, and will reduce the forestry industry to a cottage industry," Mr Hodgman said.

"The Liberals will always fight for our forestry industry and for Tasmanian jobs, and we will fight this deal every single step of the way."

The Tasmanian Chamber of Commerce and Industry feels the same way, saying the deal was a sell-out and had destroyed any chance of certainty for the forest industry.

TCCI chief economist Phil Bayley said the agreement may deliver 137,000 cubic metres of sawlogs, but locks up an additional 560,000 hectares of Tasmanian forests in two tranches.

"It appears the environmental NGOs got almost everything they wanted," Mr Bayley said.

The Australian reports the agreement meets a federal government deadline for $100 million in regional development funds linked to a successful forest peace deal, as well as at least $15 million to buy out sawlog contracts.