Under the new agreement, the board of trustees from both universities must be presented with proposals for a new governance structure by December.
Planned Parenthood of Indiana and Kentucky sued the state in April, calling the law unconstitutional and seeking to prevent it from taking effect July 1.
Indiana University has ranked in the top ten in attendance for 38 of the last 44 seasons.
Purdue is one of four Indiana universities with mumps outbreaks, also including Indiana University Bloomington, Butler University and IUPUI.
Gov. Mike Pence appointed the captain of IU's undefeated 1976 NCAA championship team to a three-year term on the board overseeing the university.
Indiana's attorney general says in a brief filed Wednesday that the court should deny Planned Parenthood's request to prevent the law from taking effect July 1.
IU and Florence Italy’s Uffizi Gallery Museum will create 3-D digital collections online of over 1,000 classical sculptures dating back to the 15th century.
Indiana has seen 132 mumps cases so far this year, compared to 39 during the five year period between 2010 and 2014.
A federal judge invited the university to file its own lawsuit over the law Tuesday when she denied its bid to join an existing lawsuit.
Magistrate Judge Debra McVicker Lynch denied IU's bid to intervene in the complaint filed by Planned Parenthood. Lynch says IU can file its own lawsuit.