"The meeting has had some positive outcome and for Afridi, the good news is that he can go and play for Hampshire as long as he withdraws his case and also appear before the disciplinary committee of the board," a source said.
Afridi's manager Umran Khan also confirmed to BBC radio that the meeting went very well and both parties had come to a amicable agreement to end the dispute between them.
He added that he had spoken to Hampshire manager, Giles White and "they're very pleased that it's all sorted out".
While the PCB confirmed the meeting took place, it refrained from sharing details of the discussion that took place between the duo.
"The PCB confirms the meeting was held," read the board's media release issued hours after it was held.
"The PCB will not make any further comment on the discussion at this stage."