Family law proceedings can generally be withdrawn if both parties reach an agreement outside of court, but for the sake of avoiding complications later, it's always a good idea to get any orders made outside of court lodged as consent orders anyway.
I assume the matter is primarily affecting care arrangements for children as you mentioned that an ICL had been appointed. The best way to reach an agreement on parenting outside of court is to engage in family dispute resolution. Both parties usually have a solicitor backing them in this case, which makes the process easier to navigate.
It sounds as though the other party is willing to negotiate an outcome and avoid the stress and fiscal impost of a prolonged court proceeding - and it is always prolonged if the FCC deems it necessary to transfer it to the FamCA. Contact the other party's solicitor, inform them that you would like to negotiate an outcome outside of court so as to avoid additional conflict for both the children's and the parents' sake, and I would suggest also including an idea of what you are after and why. It makes it less stressful and chaotic of both parties already have a goal.
I hope this helps.