O'Leary has reached an agreement with Leeds

Leeds United have agreed a settlement with former manager David O'Leary over his dismissal last year.

The club and O'Leary issued a joint statement, but details of the settlement were not released.

"David O'Leary and Leeds United are pleased to announce that terms of settlement have been agreed arising from David's dismissal in June," the statement said.

"The club has agreed to pay David compensation plus legal costs incurred by him in the dispute.

"The club completely disassociates itself from stories in the press implying that there was any financial impropriety on David's part concerning his dealings on behalf of the club.

"Leeds United and David wish each other every success in the future.

"David in particular would like to record his thanks to the fans of the club for their support.

"The parties have agreed that no further statement will be made in connection with this issue."

O'Leary spent four years at Leeds, taking them to the semi-finals of the Champions League in 2001.

But he left the club in acrimonious circumstances in June 2002 with two years remaining on his contract.

The Irishman, who was bitterly opposed to the sale of defender Rio Ferdinand, has been in disagreement with the club over a compensation package since his departure.

He contested the club's claim he left by mutual consent and was set to meet his former employers at a Premier League tribunal next month.

Leeds have been suffering from financial problems with the sales of Jonathan Woodgate to Newcastle for �9m and Robbie Fowler to Manchester City for �6m over the past week.

The departure of Woodgate angered O'Leary's successor Terry Venables, who was considering walking out on the club but has decided to remain until the end of the season.