A statement was issued on behalf of both parties today, claiming "the legal dispute between Rory McIlroy and Horizon Sports Management has been settled to the satisfaction of both parties who wish each other well for the future".

The Northern Irishman, who won both the British Open and US PGA Major titles in 2014, in addition to being part of the Ryder Cup-winning European team, had been sued by Horizon for allegedly breaking a contract that had been due to run until 2017.

After first signing with the Dublin-based company in 2011, he left to set up his own management body in May 2013.

Under the Dublin-based firm's guidance, McIlroy had engaged in extensive commercial activity including the signing of a  $100 million (£67 million/€87 million) equipment contract with Nike.

But the golfer was also suing Horizon on the grounds that his interests were not being properly looked after.

Northern Ireland's Rory McIlroy enjoyed a sparkling 2014 in which he won the British Open and US PGA Major titles to establish himself as the world number one ©Getty Images



But, three swift adjournments of scheduled court appointments yesterday indicated a reluctance to continue proceedings by both sides, and this has been confirmed by the settlement announced today, which seemingly concludes proceedings.

Paul Gallagher, McIlroy's senior counsel, told Dublin's commercial court today that the matter has now been "resolved" after dragging on for almost two years.

But the 25-year-old has shown that his problems away from the greens have not affected his form on them, as he cruised to victory at the Dubai Desert Classic last week, his season-opening event.

His next scheduled appearance is at the PGA Tour's Honda Classic in Florida later this month, before he focuses on April's Masters Tournament in Augusta, the only one of the sport's four Major titles he is yet to win.

Although from County Down in Northern Ireland, McIlroy, who finished runner-up behind Formula One world champion Lewis Hamilton in the BBC's Sports Personality of the Year poll in December, will compete for Ireland rather than Great Britain when his sport returns to the Olympic programme at Rio 2016.