Alan Pardew is free to take charge of West Ham next month after Reading dropped their High Court action against him for breach of contract.
The Royals manager will be freed from his Stg£150,000-per-year deal in time to take over from caretaker Trevor Brooking for the Division One visit of Burnley to Upton Park on October 18th.
Pardew had been prevented from speaking to West Ham about replacing the sacked Glenn Roeder at the Boleyn ground, but legal proceedings to stop him joining Reading's Division One rivals collapsed today.
Standing outside the High Court, he said: "I am delighted that the situation has been resolved without the need to involve the court and I am very excited to be confirmed as the new manager of West Ham United.
"Being a Londoner I am well aware of the tremendous stature and history of the club and understand the need to play the style of football the supporters expect.
"I know how passionate they are about the club and I can't wait to take over from Trevor and continue the job in hand of getting the club back into the Premiership as soon as possible where it belongs."
The decision of the court brings to an end a saga which had threatened to drag on for months after Reading chairman John Madejski refused to accept Pardew's resignation.
But Madejski's bid for an injunction against the 42-year-old failed, and West Ham managing director Paul Aldridge now hopes the ill-feeling between the clubs will stop.
He said in a statement: "I am delighted that we have secured the services of Alan, he was always our number one target, although it is unfortunate that his departure from Reading has caused so much acrimony.
"I am however, pleased that common sense has prevailed and the matter has now been resolved. The Board would like to acknowledge the tremendous job Trevor has done during this difficult period and know that he will ensure a smooth handover next month."
Brooking will remain in interim charge for the next seven games, and his will be a tough act to follow after four straight wins in his second spell as caretaker.