Chelsea and Jose Mourinho have reached a settlement deal with ex-team doctor Eva Carneiro "on confidential terms".
The case was due to be heard over seven to 10 days until June 24, but a settlement has been agreed on the second day of Carneiro's employment tribunal.
"Chelsea Football Club is pleased to announce that it has reached an agreement with Dr Carneiro which brings her employment tribunal proceedings against the club and Jose Mourinho to an end," read a statement on Chelsea's official website.
"The club regrets the circumstances which led to Dr Carneiro leaving the club and apologises unreservedly to her and her family for the distress caused. We wish to place on record that in running onto the pitch Dr Carneiro was following both the rules of the game and fulfilling her responsibility to the players as a doctor, putting their safety first.
"Dr Carneiro has always put the interests of the club's players first. Dr Carneiro is a highly competent and professional sports doctor. She was a valued member of the club's medical team and we wish her every success in her future career. Jose Mourinho also thanks Dr Carneiro for the excellent and dedicated support she provided as First Team Doctor and he wishes her a successful career."
It is understood that Carneiro, who left Stamford Bridge in September after being dropped from first-team duties, rejected a £1.2m settlement from the Premier League club after she claimed constructive dismissal.
However, after Mourinho turned up for the second day's proceedings in Croydon on Tuesday afternoon, an agreement was reached.
Mourinho publicly criticised the Gibraltar-born doctor after she went onto the pitch to treat Eden Hazard during Chelsea's 2-2 draw with Swansea City on the opening weekend of the 2015-16 campaign.
Mourinho admitted in a statement that he used 'derogatory language' towards Carneiro during the Swansea match and the Portuguese had a separate claim brought against him for discrimination.
