Following the announcement of a complete restructuring of its North American relationship with Infogrames, Atari has also confirmed that it has settled its dispute with Dragon Ball Z licence holder FUNimation.

Earlier this year FUNimation issued a notice to Atari threatening to terminate their current agreement due to alleged contract breaches.

Atari will pay the firm $3.5 million, of which $2.7 million is a cash payment and $800,000 a reduction in royalty advances. The new deal sees Atari retain the North American interactive entertainment rights until 2010.

Atari’s chief restructuring officer Curtis G. Solsvig III stated: "With this dispute behind Atari, we look forward to continuing our relationship with FUNimation and continuing to deliver to our consumers exciting products from the Dragon Ball Z franchise.”