Two local residents have withdrawn their High Court challenge to the decision clearing the way for the €365 million redevelopment of Lansdowne Road stadium.
However, a separate legal challenge to the development is proceeding in October.
Kevin McMahon and Mariaelena Byrne, O'Connell Gardens, Sandymount, Dublin, had been seeking a stay on works at the stadium pending a court decision on their application for leave to bring a judicial review challenge to the development.
They were seeking an order quashing the planning permission for the redevelopment and damages of €630,000.
They also wanted declarations that certain sections of the Planning and Development Act 2000 are incompatible with the European Convention on Human Rights because they fail to provide for payment or compensation to property owners whose property will be devalued by implementation of the planning permission.
At the Commercial Court yesterday, the commercial division of the High Court, Mr John Rogers SC, for the couple, said that following "significant negotiations" with An Bord Pleanála and Lansdowne Road Stadium Development Company his clients wished to withdraw their proceedings.
Counsel also told Mr Justice Brian McGovern that it had been agreed that the application for a stay be struck out.
No details of the settlement were read out and legal representatives for the various parties said afterwards that the terms were "confidential". The judge welcomed the settlement in this matter of "great interest".
A separate application by two other residents - Brian O'Keeffe and Rosemarie Loftus, both of Lansdowne Road, Dublin - for leave to seek a judicial review of the decision by An Bord Pleanála to give the stadium redevelopment the "green light" will be heard next October.
Mr Eamon Galligan SC, for that couple, said yesterday they were not seeking a stay and their position was that the development could go ahead at its own risk.
At a previous hearing, Mr Justice Peter Kelly fixed October 4th for the hearing of the leave application by Mr O'Keeffe and Ms Loftus. The judge said that, if leave was granted, the court would proceed immediately to the full judicial review action.
The total budget for the Lansdowne redevelopment project was some €365 million of which the State has committed €191 million. The completion date for the project is the end of 2009.
The redevelopment of the stadium is a joint venture between the IRFU and the FAI with the IRFU giving €95 million and the FAI giving €60 million.
It is understood the projected inflation for every month's delay would be between €1.2 million and €1.5 million.