Newcastle are to pay Real Mallorca Ј5.2million for Jonas Gutierrez after reaching an agreement with the Spanish club.
The Argentine joined the Magpies last summer after utilising Fifa's controversial Article 17 in order to complete the deal.
That ruling enables any player between the age of 23 and 28 to buy out their contract if they have been at the same club for three years or more.
Mallorca always claimed they were entitled to some compensation and had been looking for Ј12million.
The matter has dragged on for some time but it has now been resolved to Mallorca's satisfaction, with the Islanders confirming the settlement on their official website .
Mallorca will receive 20 per cent of any future sale and are set to give half of their Ј5.2million fee to Gutierrez's former club Velez Sarsfield.
"Gutierrez gave a lot for us and we gave a lot for him," said Mallorca sporting director Nando Pons.
"I think this is an agreement that is good for all parties."
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