Ray Wilkins and Chelsea have reached what both described as an "amicable" resolution over his controversial departure from the club.
Wilkins last month lost his job as assistant manager at Stamford Bridge, a decision he later branded an "undoubtedly unfair dismissal".
The 54-year-old former club captain called in the lawyers and a settlement has now been reached with the Barclays Premier League champions.
Wilkins, who joined Luiz Felipe Scolari's Chelsea coaching team in September 2008 and helped them win their first ever double last season under Carlo Ancelotti, said in a statement on the League Managers Association's official website: "It has obviously been a big wrench leaving such an illustrious club and one which has played such a huge role in my playing and coaching career.
"I have great affection for the club, the staff, the players and its supporters and wish them all the very best for the remainder of this season and the future.
"I would also like to thank the club and the LMA for ensuring that matters have been brought to a swift and harmonious conclusion."