Both clubs say they are keen to move on and put the disagree that runs behind them
Everton and Watford say they have reached a "wonderful deal" for the Toffee sequel, the manager of Marco Silva.
The head of Everton was appointed at 41 in May but Watford was dissatisfied with what they felt was the Merseyside club's illegal approach for the Portuguese earlier in the season.
The Toffees made their target number one to Silva to replace Ronald Koeman following the Dutch redundancy in October 2017.
Silva had been in care only in Watford for months, had moved from Hull over the summer.
He had done a very good start at Vicarage Road, with the club climbing as high as the fourth after winning 2-1 over Arsenal in mid-October.
It was understandable that the Hornets were reluctant to leave their manager to leave and reject Everton's attitude, insisting that Silva did not go anywhere.
After receiving defeat as they sought Silva Everton, former English chief Sam Allardyce was appointed as a new 18 month contract manager.
However, Watford was still angry at Everton for Silva's insults and losing their form after that on the Toffees.
Silva was finally eliminated in January 2018 after running only one winner in 11 games, the club saw the five points of the removal zone.
Later, Everton Silva appointed a manager in May on a three-year deal after Allardyce was dismissed at the end of the season.
Watford felt that the great movement of Silva to Goodison Park strengthens their case against Everton and made an official complaint to the Premier League.
The league then established an independent investigation to see if Everton had breached any rules.
With all the mediating attempts failing, the Premier League was ready to launch a full QC lead inquiry into the matter before the contract finally ended.
"Everton and Watford can confirm that they have reached a lovely agreement about the appointment of Marco Silva as last year's Everton manager," read a statement on both clubs' websites.
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"Everton and Watford are keen to move on this issue."
Watford appointed Javi Gracia as the successor of Silva, with the Spanish leader leading the club to the 14th finish last season.
The Hornets have enjoyed a good campaign this time and are currently eighth in the Premier League, five points ahead of Everton Silva.