Gelsenkirchen, Germany – Schalke announced on Wednesday that the team has terminated the contract of midfielder Albert Streit.
Streit has not featured for Schalke's first team in over two years after a series of injuries relegated him to training with the reserves, which prompted Streit to threaten the club with legal action.
The 31-year-old, whose contract was set to expire next summer, has now reached an out-of-court settlement with the club, although no details were disclosed.
A statement on Schalke's website read: "The legal tug of war between FC Schalke 04 and Albert Streit has ended. The club has agreed to an out-of-court settlement and the employment relationship is dissolved."
Streit is now a free agent, but according to reports, has not ruled out retirement.