Everton have resolved the long-running dispute with Watford over hiring Marco Silva as their manager after agreeing to pay compensation understood to be about £4 million.

The deal will head off the need for a full independent QC-led inquiry being launched by the Premier League, with the organisation having insisted that it wanted the issue sorted out.

Watford made a formal complaint to the Premier League last year, alleging Silva had been “tapped up” by Everton. The league employed a law firm to interview all the parties involved to establish what should happen next, in the hope that a resolution would be reached.

The range of possible sanctions, if the case had gone to an inquiry and it found against Everton, included a points deduction, but the hope was always that it would be settled through a financial arrangement. That has now happened.

Watford were left furious by Everton’s attempts to bring in Silva in November 2017, following the sacking of Ronald Koeman. Watford had started the season strongly under Silva, who had arrived in the summer on a two-year deal from Hull City, and were in the top four after eight matches.

Everton targeted Silva as Koeman’s replacement but Watford rejected their approach, turning down up to £10 million in compensation for the Portuguese, who did not have a break clause in his contract.