This agreement will pave the way for the club to finalise a lucrative sponsorship agreement with Etihad Airways.
The league informed its member clubs on Monday that they had resolved their dispute with City, ending what has been one of the most contentious regulatory battles in English football.
The decision means City’s new deal with the Abu Dhabi-based airline Etihad Airways can now be ratified.
They already sponsor the club’s shirts and hold the naming rights to the Etihad Stadium.
The saga began in 2023, when the Premier League blocked a proposed extension to City’s Etihad agreement.
The Premier League argued that it did not meet fair market value requirements under APT rules.
City challenged the regulations, claiming they were anti-competitive, and an independent tribunal sided with the club, declaring parts of the framework unlawful and unenforceable.
Despite adjusting the rules, the league faced a fresh challenge from City, with another hearing scheduled for next month.
Both parties have now agreed to drop proceedings. In a joint statement, they confirmed that the matter had been settled, with City accepting that the current rules are valid and binding.
The outcome removes obstacles to a new Etihad sponsorship, which will significantly exceed the £400 million, 10-year deal signed in 2011.
Details remain under wraps, but the agreement is expected to represent one of the most lucrative commercial partnerships in football.
While the settlement is a win for Man City, the Premier League will be relieved to close the chapter without further courtroom battles, with its amended APT framework still intact.
The Premier League, eager to avoid a legal battle that could cost millions in legal fees, appears to have resolved the situation with far less acrimony.
This case is separate from the league’s ongoing investigation into more than 115 alleged financial rule breaches by City, which is still ongoing.
