The agreement resolves the future of the 19-year-old, who has been the subject of a bitter dispute between the three clubs.

Manchester United will receive 12 million pounds (22.5 million dollars) with the other four million pounds (7.5 million dollars) being paid to Lyn.

United have agreed "to terminate their option agreement" with Mikel, whose registration goes to Chelsea.

A statement from Chelsea said: "As a result of this settlement all claims in this matter, which Chelsea were never an official party to, are now withdrawn.

"The payments do not in any way imply the acceptance of any such claims and have been made solely so that Mikel can resume his career.

"United will support Chelsea in any work permit application if necessary.

"All parties have agreed that there will be no further comment on the settlement or any of the allegations or claims."

Under the terms of the agreement Chelsea will pay half of the fee now and half in a year's time with both recipient clubs receiving their fees in two instalments.

Mikel originally signed for Manchester United from Lyn last year but then claimed he was forced to do so amid reports from the Norwegian club that he had received death threats over the transfer.

He later went missing with his Nigerian agent John Shittu before resurfacing and playing for Nigeria at the African Nations Cup in February.