Reid made the announcement at the start of the Senate session on Wednesday.
The deal would reopen the government through Jan. 15 and increase the nation's borrowing authority through Feb. 7.
Reid thanked Republican leader Mitch McConnell for working out an agreement.
Republican Sen. Ted Cruz says he won't delay a vote on the deal. Cruz had forced the government shutdown by demanding that President Barack Obama gut his health care law in exchange for a bill to keep the government running.
Cruz told reporters Wednesday that he would vote against the bipartisan bill but wouldn't use Senate delaying tactics to stall the legislation.
The Texas senator has won praise from the tea party and other conservatives for his actions.