Ray Wilkins and Chelsea have reached what both described as an "amicable" resolution over the coach's 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 said in a statement on the League Managers Association's official website, www.leaguemanagers.com: "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."
Chelsea chief executive Ron Gourlay said on the club's official website, www.chelseafc.com: "I am pleased to announce that we have come to a swift and amicable agreement with Ray Wilkins and all unresolved matters have now been settled.
"I would like to take this opportunity to thank Ray for his service to the club and wish him all the best for the future."
LMA chief executive Richard Bevan said: "All parties are delighted that an agreement has been reached in a cordial and professional manner.
"I am sure that a manager of Ray's experience will be back involved in a managerial or coaching capacity soon."