West Ham and Sheffield United have reached an out-of-court settlement over the long-running Carlos Tevez saga.

Striker Tevez, 25, helped West Ham seal Premier League survival in 2006/2007, while the Blades were relegated.

The Blades argued Tevez was ineligible to play and an independent hearing ruled in favour of their claim for compensation from West Ham.

A compensation figure has not been disclosed but the BBC understands it is in the region of £15m in instalments.

Championship side Sheffield United's chairman Kevin McCabe said: "We are happy and satisfied with the settlement with West Ham.

"Throughout the finalisation of the terms for the agreement, the discussions were friendly, co-operative and in the best of spirit with both the Blades and Hammers advisory teams.

"We are two clubs with a fantastic footballing history who now want to move on and focus on the business of playing football - hopefully for us against the Hammers in the Premier League next season."

A tribunal into the level of compensation Sheffield United would receive was set to start on Monday but will now not be needed.

West Ham chief executive Scott Duxbury stated: "For everyone concerned, the time was right to draw a line under this whole episode.

"We have had very positive discussions over a number of days with Sheffield United and acknowledge their willingness to resolve this in the best interests of both clubs."

The Hammers were fined £5.5m in April 2007 by the Premier League for breaking rules over third-party agreements when bringing striker Tevez and fellow Argentine Javier Mascherano to Upton Park.

They were not docked points and, ultimately, went on to ensure their Premier League survival, with Tevez playing a key part with his goals, including three in the last two games.

He has since moved on to Manchester United, while midfielder Mascherano is now at Liverpool.

A Premier League and Football Association inquiry launched in January continues to investigate the conduct of some West Ham representatives into the affair.

BBC SPORT