The legal dispute between Ryanair and one of its senior pilots, Captain John Goss, has been "entirely resolved", the High Court was told yesterday. The terms of settlement were not disclosed.

On the sixth day of the hearing of the proceedings yesterday, Mr Justice Declan Budd was told that the parties had agreed the terms of settlement, which were received by the court but not outlined.

It is thought that Ryanair has agreed to pay the legal costs of Capt Goss which, together with the airline's own legal costs, could amount to legal fees of as much as €800,000. It is also believed that the company's disciplinary proceedings against the pilot have been withdrawn and that he will be trained on new Ryanair aircraft at Dublin.

It is understood the pilot has been given a guarantee that he will be based in Dublin for the period ahead.

Mr Justice Budd was also told told that an application will be made to another High Court judge, Mr Justice Barry White, not to give his judgment in related proceedings brought by Capt Goss seeking to have Ryanair chief executive Michael O'Leary and two other company executives jailed for alleged contempt of a court order.

Mr Justice White heard the contempt proceedings last month but deferred his judgment until the outcome of the hearing before Mr Justice Budd.

In the case before Mr Justice Budd, Capt Goss claimed Ryanair made serious allegations in a letter of December 10th, 2004, that he intimidated other pilots at Stansted airport and had warned them not to accept positions on the company's new Boeing 737-800 based in Dublin. He denied making any such allegations and denied any intimidation. He claimed the company alleged he failed to co-operate and they had initiated disciplinary proceedings against him.

He was suspended by the company but reinstated after he brought the High Court proceedings heard by Mr Justice White.

After yesterday's settlement, Ryanair spokesman Capt David O'Brien, director of flight operations, said he looked forward to Capt Goss flying again with the company.

He said he was pleased the pilot had withdrawn and abandoned all his claims and was delighted with what was an "excellent settlement". Asked if the company would recognise Ialpa - the pilots' organisation - Capt O'Brien said it never had and was not expected to in the future.

Capt Goss told reporters that he was very pleased to be returning to flying duties and delighted that his good name had been vindicated. He regretted that his difficulties with Ryanair management had to be settled in the High Court.

Earlier, when announcing the settlement to Mr Justice Budd, Mr Roddy Horan SC, for Capt Goss, said they were not looking for an order from the court but asked for the matter to be adjourned to a later date when they would apply for the vacation of various orders and for abandonment of contempt of court applications as part of the settlement.

Mr Justice Budd said one of these applications had been adjourned for him to hear at the end of the proceedings brought by Capt Goss. The judge also asked counsel not to lose sight of the fact that one of the contempt motions was before Mr Justice White.

Mr Richard Nesbitt SC, for Ryanair, said that the latter issue was being dealt with in the settlement agreement. Counsel for both sides would need to mention it to Mr Justice White and would be asking him not to deliver his judgment. Mr Horan said the sides had devised a mechanism which they hoped would address the matter.

Mr Justice Budd adjourned the matter until June 29th. He said both parties were to be congratulated on the settlement and on taking a "cool look" at the matter.