Dame Shirley Bassey is a key part of the M&S Christmas ad campaign

Jimmy Choo - most famous for its shoes - claimed the �9.50 M&S satin handbag was uncannily similar to its �495 silk satin Cosmo evening bag.

The pair also agreed an undisclosed financial settlement to end the row.

M&S is believed to have already sold a number of the bags - many of which are set to become Christmas presents - and it could now become a collector's item.

"Jimmy Choo and Marks & Spencer have reached a confidential financial settlement, to the satisfaction of both parties, involving a design right dispute," a statement agreed by the two firms said.

"The handbag has been removed from sale by Marks & Spencer, with no admission of liability."

'Lookalike' action

The case is the latest in a string of legal actions by designers against High Street brands.

Jimmy Choo has aggressively pursued High Street firms it believes are copying its designs.

In September, fashion retailer New Look had to withdraw its Bonbon shoe from sale and pay compensation after a threat of legal action from Jimmy Choo - owned by Lion Capital.

Last summer, French fashion house Chloe began action against High Street chain Kookai for its �35 whip stitch pocket bag.

Chloe claimed the handbag was a lookalike of its �1,086 snakeskin Silverado bag which became one of the group's bestsellers after all 1,000 bags sold out within weeks of hitting the shops.

Other cases involve Monsoon, which sued Primark over alleged cut-price copies of six items, including skirts, swimwear and scarves.