Former France coach Raymond Domenech, sacked for misconduct after the 2010 World Cup, has agreed a 1 million euros (gross) settlement from the French football federation (FFF), AFP has learned from sources close to the case.
The agreement with FFF president Noel Le Graet still needs to be ratified by the executive committee of the federation at a meeting in Paris on August 4 but it appears likely they will rubber-stamp it in order to stop the case going to an employment tribunal.
Domenech had claimed 2.9 million euros in compensation while the FFF have been seeking to reclaim World Cup bonuses that Domenech refuses to return.
Earlier this month, Le Graet expressed his hope that a "definitive solution" would be found in early August.
Domenech led France to a runners-up finish at the 2006 World Cup in Germany but the rest of his tenure, which began in 2004, became synonymous with failure.
After a group-stage exit at the 2008 European Championship, France were eliminated at the same stage of last year's World Cup with only a single point and a single goal to their credit.
Their showing in South Africa was overshadowed by a training ground strike by the players, who were protesting after Chelsea forward Nicolas Anelka was excluded from the squad for clashing with Domenech.
The FFF were particularly aggrieved that Domenech read out the players' statement to the media explaining why they had elected to go on strike.
He was also criticised for refusing to shake hands with South Africa coach Carlos Alberto Parreira after France's final group game.