Gandolfini plays mob boss Tony Soprano

Production will now start in the first week of April in New York, after being delayed from its original 24 March start due to the dispute.

Financial details were not revealed, but Gandolfini has agreed to work for the time being under the terms of his existing contract.

We're delighted that the great Jim Gandolfini will be back at work in the role he has created with such distinction HBO chairman Chris Albrecht

Gandolfini said he "feels good" about returning to the show, for which he is paid $400,000 (�256,000) per episode.

Producers HBO also expressed relief at the end of the stand-off, which had threatened to leave 300 crew and cast members out of work.

"We're delighted that the great Jim Gandolfini will be back at work in the role he has created with such distinction," said HBO chairman Chris Albrecht.

It is believed the network has agreed to adjust Gandolfini's salary upward once production is underway.

If the show had been pulled for two seasons it would have cost HBO $100m.

Demands

Gandolfini had been locked in legal negotiations with HBO since 6 March.

The 41-year-old actor wanted $16m for the 13-episode season and HBO wanted to pay him no more than $11m, industry sources said.

After his demands were rebuffed, Gandolfini sued HBO in Los Angeles Superior Court seeking to be released from his contract with the network, which had two optional years remaining.

HBO countersued three days later but crisis talks between the network and the star, mediated by Sopranos' producer Brad Gray, broke the deadlock at the weekend.

On Monday, Gandolfini agreed to drop his lawsuit and honour the terms of his original contract.