CEO Steve Jobs launched Apple's iPhone last month

Last month Apple announced its forthcoming iPod-based mobile phone would be called iPhone, but Cisco had registered it in 2000.

Under the deal, they will also work together in the areas of security, consumer and business communications.

The financial terms of the agreement have not been released.

Cisco has already been marketing its own iPhone

In a joint statement, Cisco and Apple said both companies could use the word iPhone on their products worldwide. All lawsuits connected with dispute have been dismissed.

Cisco had argued that Apple's use of the iPhone name was a "wilful and malicious" violation of a trademark it had held since 2000, when it acquired another company, Infogear.

Infogear's original filing for the trademark dated back to 20 March, 1996. Cisco's Linksys division has been producing a range of wireless VoiP phones under the name since 2006.

Apple unveiled its iPhone at the Macworld Expo in San Francisco in January.