It is understood Warren will pay 197m up front for the site and development works, instead of the 200m it offered.

But the settlement also provides for Dunne to get up to 20m more in 18 months if rents increase to the levels anticipated by the developer.

Friday's settlement came after Dunne's legal team finished presenting their case alleging that an agreement by Dunne last year to sell the site to Warren for 37.5m was not binding. Dunne claimed the site sale agreement was conditional on a separate development agreement that was never signed.

On Thursday, senior counsel Dermot Gleeson argued on behalf of Warren Private Clients that Dunne's case should be struck out.

The disputed agreement dates back to May last year, when Dunne agreed to sell Warren Private Clients the site for a 100 deposit and 37.5m to be paid in March this year. In a structure designed to minimise stamp duty liability, a development agreement was to be signed separately.

When the two sides failed to agree terms on the development contract by mid-September, Dunne wanted to cancel the site sale. An interim put and call agreement would have allowed him to pull out by 1 September, but the developer did not exercise his call option. Warren refused to back off; Dunne sued.

The outcome of last week's showdown is that Warren will pay for the site and the buildings and leases on 26 June. A spokesman for Dunne said the developer was "delighted this matter had been resolved because he has other significant projects to get on with", and that "the settlement reached shows there was no binding contract for 37.5m".

In a statement, Warren principal Kevin Warren said the firm was "delighted" to buy half the biggest shopping centre outside Dublin "at a price of just under 200m, as we had always intended".