The biggest critic of the Super Teacher scheme is to work with the Government on the initiative.
The primary school union, the NZEI, voted against the policy, which would bring in performance pay and have some teachers working across groups of schools.
But the NZEI was now to work with the Ministry of Education, and would visit schools to speak with teachers about what changes were needed.
Institute president Judith Nowotarski said they were not compromising, but both sides were happy with the result.
"The roles will be created from having conversations directly with them out across the country, so that is really critical to this."
She said the Super Teacher scheme, as it stood, was not going to work.
The approach would mean any new roles are based on the needs expressed by teachers around the country, she said.