PEACE is closer to being secured in the decades-long fight over Tasmanian forests after a $274 million government package aimed at ending most logging of native forests was agreed on at the weekend.

But while the deal hammered out between Prime Minister Julia Gillard and Tasmanian Premier Lara Giddings has the full backing of industry, it has been criticised by the Greens.

Tasmanian Premier Lara Giddings.

The deal puts into effect principles already agreed on by the two sides to shift the industry out of most public native forests, to protect many of those forests in national parks, and to compensate those forced to leave.

Tasmania's forests debate has been a defining national green issue since the 1980s, marked by repeated attempts at settlement that have only bought temporary truces.