Cardiff City have reached an "amicable settlement" with former manager Dave Jones over his claim of almost £540,000 in unpaid bonuses.
Jones had taken the club to the High Court in London for money he says he was owed for guiding them to an FA Cup final and three Championship play-offs.
But both parties met in Cardiff on Tuesday and were able to reach an out-of-court agreement.
"I am glad that this issue has been resolved," said Jones in a statement.
Jones, 56, managed the club to its highest league finish for 38 years in 2009 and the play-off final in 2010, before being replaced by Malky Mackay in June 2011.
The writ revealed that Jones claimed he was owed a series of substantial bonuses for those achievements, plus £189,821 in termination payments.
A £250,000 sum Jones received from the club in April 2011 for "outstanding bonuses" still left a £539,821 shortfall against the amount Jones believes he is owed, the writ claimed.
"I would like to place on record my thanks to [chairman] Tan Sri Vincent Tan, [chief executive] Simon Lim and representatives of Cardiff City Football Club for the professional nature in which this matter was concluded in recent days," Jones, now manager of Sheffield Wednesday, added.
"Having spoken directly with Mr Tan, informing him of matters that he had no prior knowledge, an amicable agreement was quickly reached to the mutual benefit of all concerned. For that he has my gratitude."
Cardiff, who have landed a multi-million pound windfall by reaching the Premier League, thanked Jones for speaking to them to ensure a swift resolution.
"All at the club thank Dave Jones for his valuable contribution to the club during his tenure as manager and wish him our very best in his future career," said Lim in a statement.