PORTLAND — A 2-year-old boy will remain with his foster family in Oregon instead of being sent to his grandmother in Mexico despite a state recommendation.

The Oregon Department of Human Services announced Wednesday evening that an agreement had been reached in the mediation over the custody of Gabriel Allred. Steve and Angela Brandt have had custody of Gabriel since he was four months old. His biological mother and father, both with drug convictions, lost their parental rights. State child welfare officials, however, had twice recommended that Gabriel be sent to Mexico to live with his paternal grandmother, Cecilia Martinez, in an effort to place him with his extended family — emphasizing the Brandts were excellent foster parents.

The Brandts, who live near Toledo on the Oregon coast with their four other sons, had fought to keep Gabriel and formally adopt him, attracting national media attention — including support from various commentators and The Oregonian newspaper.

Under the agreement, Martinez will withdraw her request to adopt her grandson and the Brandts will move ahead with their adoption plans.

Angela Brandt said Wednesday she could not discuss details, but she and her husband were relieved the battle was finally over.

“It was heartbreaking,” Brandt said. “Now it’s time to celebrate.”

She said that she and her husband met with Martinez, who arrived in Oregon this week as part of the mediation effort.

“And we have a great deal of compassion for her,” Brandt said, adding that they will make sure Gabriel gets to know his grandmother and extended family.

The agreement announced by the state includes a requirement that the Brandts provide Gabriel with Spanish-language lessons to enable him to become fluent and that they keep a regular schedule of telephone calls and e-mails between Martinez and her grandson. Martinez also will have continued visitation rights in Oregon.

“This agreement gives Gabriel the best of all worlds,” said Dr. Bruce Goldberg, director of the Oregon Department of Human Services.

Goldberg and Gov. Ted Kulongoski had asked Bryan Johnston, the agency’s interim assistant director for its Children, Adults and Families Division, to settle the custody dispute.

Johnston, a former legislator and law professor who specializes in mediation, announced the agreement after a daylong session Wednesday in Newport. Goldberg said it will provide Gabriel with “the stability of remaining with the Brandts in a safe environment” and “to grow up knowing his grandmother and extended family in Mexico.”