Hollywood scribes initiated a work stoppage in early May as negotiations broke down with studios including , , and . Television and film writers sought protections against the use of artificial intelligence, in addition to increases in compensation for streamed content.

The WGA did not disclose what provisions ultimately made it into the preliminary contract, but told union members that "this deal is exceptional — with meaningful gains and protections for writers in every sector of the membership."

Once the WGA and AMPTP agree on the language within the contract, the negotiating committee will vote on whether to recommend the agreement and send it to the Writers Guild of America West Board and the Writers Guild of America East Council for approval. Then, the board and council will vote on whether to authorize a contract ratification vote by membership.

WGA leadership noted that the strike is not over and no members of the guild are to return to work until the agreement is officially ratified. Members were encouraged to continue standing in solidarity with striking actors on the picket lines.

President Joe Biden, who often touts his pro-union stances, cheered the agreement as he prepares to head to a Tuesday in Michigan.

"This agreement, including assurances related to artificial intelligence, did not come easily," Biden said in a statement released by the White House on Monday. "But its formation is a testament to the power of collective bargaining. There simply is no substitute for employers and employees coming together to negotiate in good faith toward an agreement that makes a business stronger and secures the pay, benefits, and dignity that workers deserve."

Following negotiations with writers, the AMPTP will need to turn its attention to SAG-AFTRA. The acting guild's members have been on strike since mid-July and are seeking contract updates similar to those requested by the writers.

Hollywood performers are looking to improve wages, working conditions, and health and pension benefits, as well as establish guardrails for the use of AI in future television and film productions. Additionally, the union is seeking more transparency from streaming services about viewership so that residual payments can be made equitable to linear TV.

"SAG-AFTRA congratulates the WGA on reaching a tentative agreement with the AMPTP after 146 days of incredible strength, resiliency and solidarity on the picket lines," the Screen Actors Guild-American Federation of Television and Radio Artists wrote in a statement Sunday. "While we look forward to reviewing the WGA and AMPTP's tentative agreement, we remain committed to achieving the necessary terms for our members."

Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal is a member of the Alliance of Motion Picture and Television Producers.

–CNBC's contributed to this article.