Limerick FC's case against the FAI has been struck out in the High Court after the judge was informed on Monday that the two parties had reached a settlement in the dispute.
Limerick had launched the proceedings after the FAI allegedly failed to invite them to submit an application to play in the First Division in 2020.
The case came before the court on Thursday and Friday, and was then adjourned until Monday to allow discussions between Limerick and the FAI to continue.
On Friday evening, the FAI released a statement on saying an agreement had been reached.
Mr Justice Leoine Reynolds was informed of that fact on Monday by Frank Callinan SC for Limerick, and so the case was struck out.
Limerick FC have thus been given the green light by the FAI to apply for a licence to compete in this season's Airtricity League.
The FAI statement on Friday said: "The Independent Club Licensing Committee is due to meet next month to assess all applications from Premier and First Division clubs ahead of the 2020 season kicking off."
Last week, a newly-formed club, Limerick United, were granted permission by the FAI to enter teams in the League of Ireland's underage competition.