The Uruguayan, who was released in the summer of 2014 after one unsuccessful season at The Hawthorns, had taken his grievance all the way to the international Court of Arbitration for Sport (CAS).

When he arrived from Paris Saint-Germain in 2013, Lugano signed a one year deal with a further year to be triggered by performance.

He disputed he had hit the targets required for a second year, but the club, who released him after one year, say he didn't.

Lugano fought the case for three and a half years and took it as far as CAS, sport's supreme court that settles international cases independently.

His case, and a second one opened by Albion on him, were due to be heard on Wednesday.

Director of football administration Richard Garlick and Albion's general counsel Simon Carrington travelled to Lausanne, Switzerland, for the hearing.

But the matter was settled out of court with private terms.