"Sotheby's is delighted to have arranged for an amicable resolution that both achieves our long-standing objective to facilitate the transfer of the sculpture to Cambodia and confirms that Sotheby's and its client acted properly at all times," Sotheby's told The Associated Press by email.
The decision follows the Metropolitan Museum of Art's return of two statues from the same 10th-century temple in June and sets a precedent for further repatriations.
Discussions are underway between the Cambodian government and the Norton Simon Museum in Pasadena, California, which has another of the temple's statues. Leslie Denk, the museum's director of public affairs, said this week that museum representatives would be visiting Cambodia and that the museum is "cooperating with the appropriate authorities."
Ek Tha, a spokesman for the Cambodian government, on Friday called the agreement "great news".
"I'm sure the spirits of the Khmer ancestors who built the statue will be right there, standing and smiling when the statue (comes) back," he said.