David O'Leary admitted he is keen to return to management after reaching a settlement with Leeds over the terms of his dismissal last year.

The Irishman is widely reported to have agreed a deal that will see him collect about �2m for his four years at Elland Road.

He was sacked last June with two years of his contract left to run after failing to take the team into the Champions League.

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

"I'm delighted at today's news and extremely happy this matter has been settled," said O'Leary.

"I would like to place on record my thanks and appreciation to the Leeds United fans who have supported me over the last eight months.

"I am now concentrating on moving forward and hopeful I will be able to return to football in the near future."

The club and O'Leary earlier issued a joint statement.

"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."

O'Leary took Leeds 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, had 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.