Aston Villa have reached agreement with Birmingham over the compensation paid to the Carling Cup holders following manager Alex McLeish's move across the city.
McLeish resigned as Blues boss after three-and-a-half years at St Andrew's last month and eventually took charge at Villa as Gerard Houllier's successor.
Birmingham, who have already appointed Chris Hughton as their new boss, demanded Villa pay them compensation for the remaining two years of McLeish's contract and initially threatened legal action.
But the possibility of a battle between the two clubs has now been removed via confirmation in a statement issued by City.
Birmingham's joint first team coach, Peter Grant, and chief medical officer, Dr Ian McGuinness, are also moving to Villa.
But other members of McLeish's backroom staff, joint first team coach Andy Watson and goalkeeping coach Dave Watson, are not following them to Villa Park.
The statement reads: "Birmingham City and Aston Villa can confirm that agreement has been reached between the parties ending the legal disputes surrounding Alex McLeish's departure.
"Aston Villa has agreed to pay Birmingham City an undisclosed figure following negotiations whereby the parties have agreed to bring to an end all disputes, including the further recruitment of Peter Grant and Dr Ian McGuinness by Aston Villa.''