Electronic identification (EID) of sheep is likely to be made compulsory throughout Europe in just over two years' time.
The European parliament has today (Thursday) delivered its opinion on the subject, paving the way for EU farm ministers to sign off the agreement when they meet in Brussels next Monday (17 December).
EID was originally due to come into force from 1 January 2008.
But the EU Commission has sought to delay its introduction, concluding in a report in November that the technology was not yet robust enough and the economic cost to the sheep sector was too great.
A compromise proposal, drawn up by the Portuguese presidency, therefore suggested a new date be set, with an introductory date of 1 January 2010.
The European parliament - which has to give its opinion before the legislation can be signed off - has accepted this as a start date.
It remains to be seen how the full council votes next week - Spain and Italy still want EID introduced immediately.
But the NFU says it expects the two-year delay to be approved, giving the industry more time to prepare for EID.
Conservative MEP Struan Stevenson said he was opposed to the principle of EID.
"Cast ewes are worth only £2 in Scotland, so how can farmers afford to tag them with microchips and purchase expensive readers. It is simply not feasable."