Grayson replaced Gary McAllister as Leeds boss in December 2008

Leeds have settled their dispute with Blackpool over manager Simon Grayson's move to Elland Road.

Championship side Blackpool alleged that Leeds had made an illegal approach for Grayson while he was still in charge at Bloomfield Road.

The clubs met at a tribunal on Thursday and have agreed an undisclosed financial settlement.

Grayson has helped Leeds to fifth place in League One having won 12 of his 20 games in charge, only losing four.

Leeds chief executive Shaun Harvey said:"We are delighted the matter is now resolved and Simon can continue with the work he has started in seeking to get the club promoted."

Blackpool chairman Karl Oyston added: "We are pleased to have resolved this matter. We wish Simon and Leeds well for the future."

The Seasiders are yet to replace Grayson, with caretaker boss Tony Parkes currently in charge at the club.

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