The Lawn Tennis Association (LTA) and the members of the Queen's Club have reached an out of court settlement over the sale of the club.

With a High Court showdown looming, the LTA has agreed to sell the Kensington club to the membership for a price of £35m – a reduction of £10m on the originally agreed price.

The original price tag of £45m, for a piece of prime West London real estate, had been agreed by the members' board, but a group of members contested the LTA's right to sell the club, leading to the prospect of an expensive legal battle.

The settlement, which includes an additional payment of £500,000 towards purchase costs, will allow the LTA to focus on the move of its headquarters to the new centre of excellence at Roehampton in the new year. LTA president Stuart Smith was pleased to draw a line under the affair: "We are delighted that we have reached this agreement which allows us to concentrate on the real job of developing tennis in this country."

The members group, led by Alexander Anton, chair of the Queen's Club, was delighted with the outcome: "This is the best outcome for members – ownership of the club for significantly less financial outlay than we had initially anticipated."