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The Red Bull and McLaren Formula 1 teams have agreed to end their legal dispute over aerodynamicist Dan Fallows.

AUTOSPORT revealed earlier this year that McLaren planned to take Red Bull to court for what it felt was enticing Fallows to break a contract he had with the Woking-based team and instead return to Milton Keynes.

The matter dragged on for several weeks, with neither side willing to back down, but progress was made over the Canadian Grand Prix weekend following talks between Red Bull boss Christian Horner and McLaren Group CEO Ron Dennis.

A deal has now been agreed in principle for the legal action to be dropped.

While neither Red Bull nor McLaren will reveal details of the terms of the settlement, AUTOSPORT understands that it did not involve any financial arrangements.

Instead, it may revolve around McLaren getting hold of former Red Bull aerodynamics chief Peter Prodromou earlier than originally expected.

Prodromou signed a deal to join McLaren at the end of last year, but the terms of his contract with Red Bull meant he could not start with his new employer until January 1, 2015.

It is now likely, however, that as part of the Fallows settlement Prodromou could start with McLaren later this year.

Speaking about the matter, Red Bull boss Christian Horner said: "I have a handshake with Mr Dennis which, being a gentleman and a man of his word, means we have an understanding."

When asked if it meant Red Bull was now going to release Prodromou early, he said: "That is for you to speculate and me to know."

A McLaren spokesman added: "Ron and Christian have indeed discussed a number of outstanding issues recently, yes, and they have resolved them. As Christian says, a handshake is all you need with Ron.