George Graham will receive a pay-off of Stg£750,000 after reaching an agreement with Tottenham over his claim for unfair dismissal.
A meeting was held between Graham and Spurs on Tuesday and a deal was finally struck on Wednesday, preventing the case from going before an arbitration panel.
And today both parties reached the six-figure settlement through the Premier League's mediation procedure conducted by the Sports Dispute Resolution Panel.
A statement added that both sides "wished each other the best for the future in their respective endeavours".
Graham, who was sacked by Spurs at the end of March, had launched a claim for more than Stg£2million against the club.
However, he has settled on less than half that sum to bring the long-running dispute to an end.
Although the case did not preclude Graham from seeking another job, the fact it is now over will enable him to step up his bid to return to Premiership club management.
PA