Vineyard fishermen have dropped their lawsuit over the Cape Wind project, with Cape Wind in turn agreeing to help fund a new fishing permit program.

At a conference call with members of the Island and regional media Tuesday, Cape Wind communications director Mark Rodgers and Warren Doty, president of the Martha’s Vineyard/Dukes County Fishermen’s Association, announced that the lawsuit, which was filed in federal court about two years ago, would be dropped, with Cape Wind agreeing to pay an undisclosed sum toward a new fishing permit program to help Island fishermen.

Mr. Doty said the fishermen’s association would work with Cape Wind to “establish safe, continued fishing access to offshore areas.”

“Cape Wind is very proud to have the support of the Martha’s Vineyeard/Dukes County Fishermen’s Association,” Mr. Rodgers said, calling the agreement a big step forward for sustainability on Martha’s Vineyard, Nantucket, and Cape Cod.

To that end, he and Mr. Rodgers said Cape Wind has agreed to donate an undisclosed sum of money toward the Martha’s Vineyard Fishermen’s Preservation trust, which will buy fishing permits and lease them at affordable rates to Island fishermen.

In 2010, the fishermen’s association sued the U.S. Secretary of the Interior in federal court, claiming that the Cape Wind Associates wind farm would put fishermen out of work.

About 100 commercial fishermen, represented by the fishermen’s association, and Chilmark fisherman Jonathan Mayhew were the plaintiffs in the case. They said the lease to build 130 turbines on Horseshoe Shoal in Nantucket Sound threatened the livelihoods of Island fishermen, including conchers and squidders who work the shoal.