The Sunday World and journalist Paul Williams have settled a High Court action brought over his planned move to the rival News of the World.
The Sunday World secured a temporary injunction earlier this month restraining Mr Williams working for any other publication pending further legal proceedings brought on the basis of the newspaper's claim he was required to serve three months notice.
Mr Williams argued his three year contract with the Sunday World had expired on January 12th last and rejected claims, under an agreement with the National Union of Journalists, he was obliged to serve the period of notice.
The court was due to hear proceedings today on whether the temporary injunction should continue pending a full trial of the matter.
However, following talks between the sides, Mark Connaughton SC, for the Sunday World, told Mr Justice Roderick Murphy the matter had been resolved amicably.
The judge agreed to strike the matter out with no order on costs and to discharge the interim injunction.
Mr Williams, who has been a reporter with the Sunday World since 1988, informed the paper's managing director, Gerry Lennon, on January 14th of his intention to leave and work for the News of the World. It has been reported he is to receive a salary of €250,000 a year.
Under a three year contract running from January 2007 to January 2010 with the Sunday World, he was to receive a €145,000 a year salary, to increase by 2.5 per cent in 2008 and 2009, and with additional payments for promotional work.