Stuart MacGill has settled a dispute with Cricket Australia (CA) over his USD 2.6 million claim in salary and match payments after injury forced the former Australian leg-spinner's retirement in 2008.
MacGill agreed to mediation with CA on Friday, avoiding a possible trial from August 14.
"We can confirm the case has been dismissed," a CA spokesman was quoted as saying by Sydney Morning Herald.
It is, however, reported that the cricket board would not disclose details of the settlement.
The 46-year-old, who played 44 Tests for Australia in which he took 208 wickets, had claimed that the country's cricket board had neglected or failed to pay him injury payments over a two-year period from May 2008.
The former leg-spinner, in his writ lodged in January 2015, said he had endured several injuries through his career, including an ankle bone fracture, cartilage damage to his right knee, nerve damage affecting both hands and wrists, bone fracture to right elbow, finger pain in both hands and rotator cuff displacement in his right bowling shoulder.
MacGill was initially seeking USD 2.06 million, including USD 1.27 million in match payments, prize money and retainers.
MacGill played last of his Tests on the West Indies Tour in 2008.