The Football Association (FA) and Multiplex have reached an agreement to end the continuing dispute over the Wembley Stadium and are “committed to working together to ensure the stadium opens for business as early as possible in 2007”.

The deal between The FA and the Australia-based building firm will avoid a lengthy and expensive court battle, which could have seen the opening of the £800m stadium delayed until 2010.

Brian Barwick, The FA’s chief executive, said: “This agreement secures the process of getting the new Wembley up, running and open to the public. We consider this agreement with Multiplex to represent the beginning of the end of the construction phase.”

Demolition of the old stadium, with its iconic towers, began in September 2002 and the new Wembley National Stadium was scheduled to have been completed in January 2006.

The project has since been hampered by delays, including a roof collapse and reports that it was sinking, which led to the cancellation of this year’s FA Cup Final – which was moved to Cardiff’s Millennium Stadium – and several concerts.

The FA has not yet said whether the 2007 FA Cup Final in May will be staged at the Wembley.

A legal dispute between Wembley National Stadium (WNSL) – a subsidiary of The FA – and Multiplex seemed imminent following WNSL’s concern about rising costs and the builders’ allegation that delays were due to changes to the design. Multiplex also claimed to have suffered losses due to increases in steel prices.

Multiplex chief executive Andrew Roberts said: “We are very pleased to have reached agreement with WNSL and The FA to put our past differences behind us and put all our joint efforts into completing Wembley Stadium at the earliest opportunity.” Details: www.thefa.com