Hana Ranch Partners said it is selling 63 acres (25.5 hectares) at Mokae near Hamoa Beach to the billionaire TV talk show host Oprah Winfrey, who already owns 102 acres (41 hectares) on the Valley Island.
The purchase price wasn't disclosed, but will become public when the deal closes.
If the deal goes through and Winfrey builds a home at Mokae, she is expected to drop her plans to build on a 102-acre (41-hectare) Lehoula property she bought in 2002 with her close friend Bob Greene.
Hana resident Carl Lindquist said he was thrilled about the deal, which limits development at Mokae to a single residence and ends Winfrey's plan to build at Lehoula, where her home would have been visible from the road, the AP informs.
"I think it's great for Hana. We should all go out and celebrate," Lindquist said.
The agreement also includes preserving another 192 acres (78 hectares) from development. In a letter to Hana residents, top officials of the Hana Ranch Partners said the arrangement would be "one of the most important private conservation efforts to occur on Maui."