Manchester United owners INEOS and New Zealand Rugby reached a settlement agreement on Monday following their dispute over a sponsorship contract, according to Sky Sports.

New Zealand Rugby launched legal action in February for alleged breach of contract, claiming the global chemicals producer - owned by British billionaire Sir Jim Ratcliffe - walked away from a six-year deal that was signed in 2021 and due to run from 2022-2027.

INEOS informed them in January of their intention to exit the agreement, which had their branding on the back of playing shorts and on the front of training jerseys for the All Blacks and other national men's and women's rugby teams.

AN NZR statement at the time read: "New Zealand Rugby is disappointed that INEOS has breached its sponsorship agreement. Most recently, it failed to pay the first instalment of the 2025 sponsorship fee, confirming its decision to exit our six-year agreement.

"Having learned of INEOS' decision to walk away three years early, we have moved to protect the interests of New Zealand Rugby and the wider game. We have been left with no option but to launch legal proceedings to protect our commercial position."

INEOS responded by saying that discussions with New Zealand Rugby were sought to adjust the sponsorship as part of cost-saving measures.

Details of the settlement agreement announce by both parties on Monday remain confidential but in statements New Zealand Rugby and INEOS said both organisations were satisfied with the outcome and acknowledged a desire to move forward.

The news comes after INEOS backed Britain's America's Cup bid last year but announced in January it had split with skipper Ben Ainslie's crew which lost 7-2 to New Zealand in the final series.

Ratcliffe purchased a minority stake for £1.25bn to buy a 27.7 per cent stake in Manchester United last year, that was increased to 28.94 per cent - a further £79m - in December.