A sportswear firm run by Newcastle owner Mike Ashley has halted High Court litigation with Rangers.
Lawyers for Sports Direct told a judge on Wednesday that bosses were discontinuing legal action.
Mr Justice Peter Smith gave his approval at a High Court hearing in London.
Sports Direct had claimed Rangers' chairman Dave King had breached a confidentiality undertaking relating to a commercial deal. Mr King had disputed the claim.
A trial had been fixed for next week.
Lawyers for Sports Direct told the judge the firm had agreed to pay all lawyers' bills - estimated to total around Â£400 000 - run up during the litigation.
Mr Justice Smith said the litigation had been "ridiculous".