Both parties had been suing each other over differences relating to Brown's departure from the club and the removal of his special privileges however an out-of-court settlement now means the much-hated Brown will be allowed back inside the Boleyn Ground.
Many fans will be left somewhat disappointed with the result as Brown is heavily blamed for West Ham's numerous failures during his tenure at the club and for playing his part in events leading up to the £5.5 million fine received over the Tevez & Mash saga.
Current Chairman Bjorgolfur Gudmundsson said, "It is time to move on from old disputes and legal battles. My focus, and that of the whole Board, is on the future. To do that we need to draw a line under past issues and also recognise that what matters is building a successful football club.
"Terry Brown has a long history with West Ham United as former Chairman and leading shareholder and there is no reason for the club and Terry to be at odds with each other.
"We have settled our differences and Terry will be a welcome guest at the club as we move forward into the new season."
Money-grabbing Brown commented, "I am pleased that we have brought these matters to a sensible conclusion. Mr Gudmundsson has made clear his focus is on the future not the past and I totally support that vision.
"West Ham United has always been a special part of my life and I am delighted that I will again have an opportunity to show my support for the club.
"The new Chairman and Board genuinely believe in this great club and I wish them every success in the years ahead."