Manchester United have agreed a settlement with Newcastle United to appoint Dan Ashworth as their sporting director, both clubs announced on Monday.

United and Newcastle made a breakthrough in negotiations on Friday and Ashworth is set to start work at Old Trafford immediately.

An arbitration hearing to resolve a four-month stand-off between the two clubs was due to start on Monday.

The clubs said in a statement: “Newcastle United and Manchester United have reached an agreement for the immediate release of Dan Ashworth from his contractual obligations at Newcastle United. The terms of this agreement remain confidential between the clubs. Newcastle United thanks Dan for his services and wishes him well for the future.”

Ashworth has been on gardening leave since February after telling Newcastle he wanted to move to United.

The 53-year-old had been facing an 18-month wait to start work with Newcastle demanding a compensation payment of £20 million.

Ashworth is the latest key appointment at the club following Sir Jim Ratcliffe’s arrival as co-owner.

Omar Berrarda will take over as CEO on July 13 following the end of his gardening leave from Manchester City. Jason Wilcox is already in place as technical director after arriving from Southampton.