DJ Howard Stern will join an unregulated radio station next year

US media giant Clear Channel pulled the "shock jock" last year after it was fined for indecency on his show.

Stern sued Clear Channel for $10m (�5.2m), claiming the firm broke his contract, and he was countersued for allegedly breaching his contract.

Clear Channel said both parties had now agreed to withdraw their legal action.

'Vulgar' broadcast

Stern and his current distributor, Infinity Broadcasting, were unavailable for comment and Clear Channel did not reveal the terms of the agreement.

Clear Channel stopped airing Stern in February 2004 after the company said one broadcast was "vulgar and insulting".

He was permanently dropped in April when the US regulator - the Federal Communications Commission (FCC) - fined the media company $495,000 (�259,400) for indecency in Stern's show.

Stern sued Clear Channel for $10m (�5.2m), claiming Clear Channel broke his contract when it dropped his show in six markets after the fine.

'Tired of censorship'

But in July, the company filed a $3m (�1.57m) counter action against Stern, claiming he breached his contract by airing indecent programs.

Andrew Levin, Clear Channel's executive vice president, said: "We are pleased to resolve this contractual dispute with Howard Stern without further legal expense and delay."

In October, Stern announced on air he was ditching his syndicated morning show to join a subscription network which is free from regulators because he was "tired of the censorship".

His new five-year contract with Sirius Satellite Radio was described as "a multi-million dollar agreement".