Controversial umpire Darrell Hair on Tuesday unconditionally withdrew his racial discrimination claim against the International Cricket Council, which had suspended him from the elite umpires panel.
"Darrell Hair withdraws unconditionally his allegation of racial discrimination against the ICC Board, members and staff," said the Australian umpire's lawyer Robert Griffiths.
It is understood that no financial pay-off was made to Hair, according to 'BBC Sport'.
Hair was demoted from the ICC's Elite panel of umpires after the first-ever forfeited Test following ball tampering allegations against Pakistan in their Test against England at the Oval last year.
He took the ICC to an employment tribunal claiming racial discrimination because no action was taken against fellow umpire Billy Doctrove of the West Indies.
The ICC Board will meet to discuss the results of his rehabilitation and decide whether he can return to elite umpiring, and if so, on what terms.
"Hair has undertaken to work with ICC management in accordance with the rehabilitation programme over the next six months," Griffith said.
ICC President Ray Mali welcomed the development, saying "we are pleased the issue has been resolved".
"We had no option but to defend these serious allegations," he added.