Wanderers Rugby Football Club, which was facing relegation just two weeks ago, will be playing second division football next year, the High Court was told yesterday.
The resolution of a dispute between Wanderers and the Irish Rugby Football Union was described by Mr Bill Shipsey SC, for Wanderers, as a "win-win" situation for both sides.
Under the settlement terms announced, Wanderers and two Northern clubs - Malone and Ballynahinch - will be playing in division two next year. Up to yesterday the two Northern clubs were locked in a play-off situation to see which would play in division two and three next season.
Last week Wanderers secured an injunction restraining the IRFU from relegating it from division two of the AIB League.
The club applied for the order when the IRFU deducted it three points after Wanderers' end of season league fixture, against Buccaneers RFC of Athlone of April 11th, was postponed when Wanderers claimed their pitch on Merrion Road, Dublin, was waterlogged.
The decision to award the game and points to Buccaneers was challenged by Wanderers and a full High Court hearing was to be held next Thursday. Yesterday, however, Mr Shipsey told Mr Justice McCracken that an agreement had been reached. The court could discharge the injunction and strike out the case with each side bearing its own costs.
Mr Brian O'Moore, for the IRFU, then read the agreed statement to the court. It said that "both the union and Wanderers are aware that a full hearing of the matter would be undesirable and detrimental to the interests of the game as a whole.
"As a result, a settlement has been achieved." Yesterday's outcome means that only one club, Monkstown RFC, is now being demoted from division two this season.