The star designer will stay at McLaren after the two teams brokered a deal to end the argument that has raged for nearly two weeks.

Jaguar announced on 1 June that Newey would be joining them at the end of his current contract with McLaren in 2002.

But McLaren claimed the 42-year-old had changed his mind and would be remaining another three years beyond 2002.

Jaguar then took out an injunction against McLaren as they believed they had a binding contract, forcing the issue to the High Court.

However, the teams managed to find an amicable resolution. Newey will remain at McLaren, where he has worked since 1997, beyond the end of his current contract.

And it is expected that Jaguar will have been paid some form of compensation by McLaren.

The settlement was presented to the court and approved by Mr Justice Eady.

McLaren chairman and CEO Ron Dennis said: "I would like to apologise for any misunderstanding that has been caused over what has become a confused and complex affair.

"I am sure that in future our relationship will be an excellent one and that our rivalries will be confined to on-track competition."

'Gracious apology'

Newey, who is likely to be given a freer role within McLaren beyond 2002, said: "I regret that this matter has occurred but I am delighted that it has now been resolved.

"I apologise for any difficulties that have been caused. I am sure that we will all now put this matter behind us and concentrate on our common passion for motor racing."

Niki Lauda, chairman of Ford's Premier Performance Division which incorporates Jaguar Racing, has accepted the apologies of both Dennis and Newey.

He said: "I am glad that this matter has been concluded and it is gracious of Ron and Adrian to each offer an apology."