One Direction have settled a dispute with an American band of the same name after their U.S. counterparts agreed to change their moniker.

The boy band became embroiled in a legal battle over their name after shooting to fame on the U.K. version of "The X Factor" in 2010.

The American One Direction filed a trademark lawsuit against the "What Makes You Beautiful" hitmakers and their representatives at Simon Cowell's Syco Entertainment and Sony Music, and the Brits subsequently hit back with a countersuit.

However, it has now emerged the dispute has been settled after the California-based singers agreed to change their name to Uncharted Shores.

One Direction will be able to continue without change. Both parties are said to be happy with the resolution.