Curbishley is now free to return to management after agreeing a pay-off over his Upton Park exit 17 months ago.

The 52-year-old, who has been linked with the QPR job, recently won a claim of wrongful dismissal against the Hammers.

He walked out after the club sold Anton Ferdinand and George McCartney to Sunderland against his wishes - sales which breached his contract.

But West ham's new co-owners David Sullivan and David Gold acted quickly to bring the matter to a conclusion following their takeover at Upton Park last month.

A statement from West Ham read: "West Ham United are pleased to confirm the club has settled all outstanding matters with Alan Curbishley.

"Upon taking charge of the club last month along with David Gold, joint-chairman David Sullivan acted straight away in order to reach a settlement that was in the best interests of all parties.

"An FA Premier League arbitration tribunal had previously upheld Curbishley's claim of wrongful dismissal following his resignation at the beginning of the 2008-09 season."

Co-owner Sullivan added: "I am pleased this has all been settled. We moved as swiftly as we could to resolve the matter in a positive manner with Alan and his representatives.

"As football people, we realise this had to be dealt with from a moral and legal point of view as quickly and possible. It was best to draw a line through what had gone on under the previous owners, allowing us instead to focus fully on our challenge of taking West Ham United forward.

"Slowly but surely we are getting this club back on an even keel and there are many reasons to be positive for the rest of the season and beyond.

"I wish Alan all the best and I am sure he will be given a warm welcome when he next returns to the Boleyn Ground."

In a statement given to the League Managers Association, Curbishley spoke about his record at the club, before adding: "I would like to thank David Sullivan for acting quickly and concluding the settlement since his arrival at West Ham.

"It has taken many months to conclude this case but I am proud of my record at West Ham which included a win ratio of 40%, after initially keeping the club in the Premier League and a 10th-place finish in my only full season in charge.

"I would also like to thank the LMA, Mike Morrison of Hill Dickinson and Paul Gilroy QC for their support, hard work and confidence in my case.

"With my managerial record intact, I am now looking forward to the future and getting back into football management."

Curbishley joined West Ham in December 2006 and kept them in the Barclays Premier League that season after a dramatic last-day victory at Manchester United.