Former Albion boss Gus Poyet has dropped his employment tribunal claim against the club - without receiving a penny in compensation.
Poyet, now in charge of Sunderland, opted for legal action after he was sacked by the Seagulls in June for gross misconduct and lost his club appeal against the verdict.
A statement made by a legal representative on behalf of the Uruguayan read: "In relation to Mr Gus Poyet's departure from Brighton Football Club, both Mr Gus Poyet and Brighton Football Club have now reached a settlement whereby Mr Gus Poyet has withdrawn his Employment Tribunal Claim."
The Argus understands the agreement reached between the parties does not involve any financial settlement.
Poyet's legal representative added: "Mr Gus Poyet would like to take this opportunity to express his sincere thanks to Brighton Football Club and in particular the fans for the tremendous support received during his time as manager at Brighton Football Club.
"Mr Gus Poyet wishes both Brighton Football Club and the fans well for the future."
Albion refused to comment.