Nigel Short, who was also officially given the all clear after a long fight against throat cancer this week, was alleged to have defamed the club on the Owlstalk website.

Solicitors Irwin Mitchell released this statement on behalf of the club: "Sheffield Wednesday Football Club can confirm that all legal action against Nigel Short has been discontinued.

"The club was sorry to hear that Mr Short was diagnosed with cancer several months ago and, since learning of Mr Short's medical condition, substantial efforts have been made by the club to resolve this matter bearing in mind the health of Mr Short, and in the interests of all parties.

"Offers have been made to the solicitors acting for Mr Short including an offer to make a substantial payment towards his legal costs, and a request for a meeting with Mr Short and his lawyers to discuss the resolution of this matter, but these have been rejected by Mr Short's lawyers.

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"As all potential avenues for negotiation appear to have been exhausted, the club has therefore decided to discontinue proceedings to resolve this matter.

"The club accepts that it will be required to pay the reasonable legal costs incurred by Mr Short to resolve this matter.

"The club wishes to move forward and concentrate on success on the pitch.

"Everyone at the club wishes Nigel Short the very best in his recovery from his illness, and the club is pleased that this matter has now been resolved."

Mr Short said: "It's been quite a week for me, and naturally I am delighted."

Mr Short plans to release a full statement through his solicitors as soon as possible.

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