Chelsea have agreed to pay £12 million to Manchester United and £4 million to Lyn Oslo to secure the services of John Obi Mikel.

The agreement resolves the future of the 19-year-old Nigerian forward which has been the subject of an occasionally bitter dispute between the three clubs.

Mikel's registration will be transferred from Lyn to Chelsea "as soon as possible" according to a statement from United, who have agreed "to terminate their option agreement" with the player.

The statement on the United website continued: "Under the terms of this agreement Chelsea will pay Manchester United £12million, half payable now and half in 12 months, and Lyn £4million, half payable now, and half payable in 12 months' time.

"As a result of this settlement all claims in this matter, which Chelsea were never an official party to, are now withdrawn.

"The payments do not in any way imply the acceptance of any such claims and have been made solely so that Mikel can resume his career.

"Manchester United will support Chelsea in any work permit application if necessary.

"All parties have agreed that there will be no further comment on the settlement or any of the allegations or claims."