Jon Obi Mikel completed his long and controversial move to Chelsea in June 2006, after earlier seeming destined for Manchester United.

The Barclays Premiership champions agreed to pay a combined £16million transfer fee for the 19-year-old, with £12million going to United and £4million to the player's former club Lyn Oslo.

United thought they had sealed a deal for Mikel when he signed a pre-contract agreement with them just over one year ago.

However, the Nigerian then claimed he had been pressured into signing the contract and wanted to join Chelsea instead.

United have now agreed "to terminate their option agreement" with the player whose registration goes to Chelsea.

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said: "As a result of this settlement all claims in this matter, which Chelsea were never an official party to, are now withdrawn.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