Designers Thomas Heatherwick Studio and subcontractors Packman Lucas, Flint and Neill Partnership and Westbury Structures were due to appear before the High Court next week to answer allegations of negligence.
The council accused the firms of breach of contract and was suing to recover at least ВЈ300,000 it spent fixing the ВЈ1.42m sculpture.
Built to commemorate the 2002 Commonwealth Games, the sculpture has been beset by problems and had nine of its distinctive steel spikes removed after one fell off in 2006.
As a result of the settlement, the court proceedings will no longer go ahead, reported CrainвЂ™s Manchester Business.ADVERTISEMENT
Manchester council solicitor Susan Orrell said: вЂњThe settlement allows the council to recover substantial damages and avoid further cost and the risks that are always associated with legal proceedings.
вЂњI am pleased we have reached a settlement that is, in my view, in the best interests of the council and now that this has been achieved, it means the council can move on and consider the options for the future of the structure in conjunction with the projectвЂ™s funders.
вЂњWhen this work is completed a report will go to the councilвЂ™s executive in the new year.вЂќ
The defendents said it was a вЂњmatter of considerable regretвЂќ that the sculpture suffered the problems it did.
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