World number one Rory McIlroy was spared a protracted legal battle ahead of the US Masters in April after settling a case with his former management company on Wednesday in a deal understood to be worth in excess of €17 million (Dhs71 million).

McIlroy had been suing Conor Ridge's Horizon Sports Management company, who in turn counter-sued the Northern Irishman over the terms of an agreement he struck with the firm in 2011.

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After proceedings opened at Dublin's High Court on Tuesday, there were three deferrals as lawyers for both sides held talks.

Negotiating teams stayed late on Tuesday in an attempt to find a solution in a case that threatened to disturb the golfer's preparations for the Masters.

In a brief statement issued in court, the two sides confirmed they had reached an agreement.

"The legal dispute between Rory McIlroy and Horizon Sports Management has been settled to the satisfaction of both parties who wish each other well for the future," the statement said.

The terms of the settlement were not disclosed but a source close to the case indicated the agreement was worth more than $20 million to Horizon.

McIlroy was not in court on Wednesday but Ridge did attend, although he made no comment to reporters.

The 25-year-old McIlroy's deal with Horizon, renegotiated in 2013, was to last until 2017, with Ridge's company receiving commission on the golfer's financial dealings.

McIlroy took action over over €5.6 million in fees to Horizon from his earnings on and off the course.

Horizon had argued they had a contract with McIlroy entitling them to a share of his endorsement earnings until 2017.

McIlroy terminated his contract with Horizon in September 2013, forming his own company to manage his affairs, Rory McIlroy Inc.

He argued the terms of his deal were vastly inferior to those signed by other golfers at Horizon, including fellow countryman and major winner Graeme McDowell.

He claimed Horizon charged almost four times what top ten golfers pay to agents.

McIlroy was with Horizon when he signed a sponsorship deal with equipment manufacturers Nike in early 2013, by itself said to be worth $100 million over five years, and also signed other high-worth deals.