Tom Schnackenberg, the man who held Team New Zealand together when Russell Coutts and Brad Butterworth switched to Alinghi, is to join the Italian America's Cup syndicate Luna Rossa for the 2007 event in Valencia, Spain.
When round the world yachtsman Grant Dalton took over at Team NZ, Schnackenberg, who headed the disastrous 2003 campaign, was demoted to the design team.
He parted company with the syndicate in December but took legal action claiming Team New Zealand's leadership only signed him up to stop him working for another team.
The two parties have now settled their legal action with Schnackenberg agreeing to pay Team New Zealand's legal cost.
The America's Cup legend is now set to join Luna Rossa.