Waterford United's survival was confirmed this afternoon after an application to wind up the football club was struck out.
The League of Ireland soccer club's former first team manager Stephen Henderson had petitioned the High Court to have WUFC Operations Ltd the company which operates the League of Ireland First Division club liquidated.
Mr Henderson took a case against the club following his dismissal in 2011.
Last year he obtained a judgment against the club, which has not been satisfied.
Mr Henderson said the company, based at the Regional Sports Centre Cork Road Waterford, was insolvent and unable to pay its debts as they fall due, should be wound up and a liquidator appointed.
Today at the High Court Stephen O'Connor Bl for Mr Henderson told Ms Justice Mary Laffoy that the matter had been resolved and the petition could be struck out.
The settlement was announced following talks between the company and Mr Henderson's representatives.
No terms of the settlement agreement were revealed in open court. The settlement is understood to be confidential.
News of the settlement was welcomed by a number of Waterford United supporters, several of whom attended today's hearing in the High Court with their blue and white scarfs.
The winding up application was brought after the company failed to satisfy a judgment of €37,600 made against it in favour of Mr Henderson, The Spires Carrignafoy, Cobh Co Cork at Dungarvan Circuit Court last December.
That judgment was affirmed by the High Court last March.
When the matter was previously listed before the court the company asked for an adjournment as new lawyers had only just come on record.
Ms Justice Laffoy in agreeing to the request said the matter would be dealt with today one way or another.