Ferguson (right) with jockey Michael Kinane and Rock of Gibraltar

The pair fell out over breeding rights for the racehourse Rock of Gibraltar, which was part-owned by Ferguson.

That created tension between the Scot and Magnier, who - with business partner JP McManus - is the biggest shareholder in Manchester United.

It is believed that Ferguson agreed a deal to avert a courtroom battle.

The Manchester United boss told The Sunday Times newspaper: "We have all decided to move on, it's over now.

"I am just looking forward to getting back to normal life."

While we were working this out, I spoke personally with John Magnier, and that helped Sir Alex Ferguson

Ferguson part-owned Rock of Gilbraltar with Magnier's wife, Susan, and watched it win a record seven Group One races as a three-year-old.

But the Scot's name was dropped from the list of owners when the colt went to stud.

Ferguson contested the decision, prompting a dispute that had major repercussions at Manchester United as well as in the horse racing world.

Following the outbreak of hostilities, Magnier and McManus criticised Ferguson's behaviour, with regard to transfer deals, in a letter to the club's board.

The move put pressure on Ferguson but also led some United fans to protest against Magnier and McManus at a number of race meetings.

But now Ferguson is thought to have accepted an offer of around �2.5m to cover stud fees for the horse.

Ferguson added: "While we were working this out, I spoke personally with John Magnier, and that helped.

"I am glad that it has been an amicable settlement. Both parties had to compromise to get it settled."