KING

Under the new agreement with The Seattle Times, the Seattle Post-Intelligencer could switch to a tabloid format.

SEATTLE - An agreement settling a four-year legal dispute between The Seattle Times and Hearst Corp. includes a provision that would allow Hearst's Seattle Post-Intelligencer to become a tabloid, according to terms made public Tuesday.

Both newspapers posted copies of their amended joint operating agreement on their Web sites. The agreement was signed Sunday to avoid binding, closed-door arbitration over a legal dispute that threatened to close the P-I.

Under the agreement, The Times, which handles business functions including printing, circulation and advertising at both papers in exchange for 60 percent of their joint profits, could not switch the P-I from its broadsheet format without Hearst's consent.

It also says: "Hearst may, however, at its discretion choose to move the P-I to a tabloid format. In such event, Times and Hearst shall agree upon such production, marketing, circulation and advertising accommodations and adjustments as shall be reasonably necessary or appropriate to effectuate the P-I's change in format."