A statement from Abhann Productions, the Dublin-based producers of the show, said they acknowledged Flatley's contribution to the original development of Riverdance, although other terms of the agreement remain confidential.

Flatley was sacked from Riverdance on the eve of its triumphant return to London in October 1995.

The 40-year-old Irish American issued a writ against the producers in 1995 after disputes over pay and profit sharing.

He has always maintained that the show could not have been created without him.

Flatley went on to achieve international fame with his own show, Lord of the Dance, which has played a series of sell-out concerts across the world.

A joint statement from Riverdance producer Moya Doherty and Flatley said: "Everyone is very pleased that matters have been finally resolved."