The neighbour holding up the construction of Chelsea's new stadium has dropped his legal action against the club following an out-of-court settlement between the two parties.

Nicholas Crosthwaite, a retired banker, complained that the 60,000-seater ground would block out the sunlight going into his family's house.

The family took out a High Court injunction in May to reverse the construction plans for the stadium, delaying the club's aims of commencing the 2023-24 season in their new home.

Crosthwaite had challenged the council's decision to compulsorily purchase the air rights over part of Stamford Bridge and the railway line which separates the stadium from his home, but Chelsea announced on Wednesday that the family had finally agreed to settle for an undisclosed sum.

"Chelsea FC have reached an agreement to settle the ongoing legal proceedings in relation to rights to light. The details of the agreement are confidential," read a statement from a club spokesperson.

Chelsea were forced to compensate almost 50 homes in order to get planning permission for the new stadium.