The Tulio De Melo saga has been resolved and he will play for Palermo next season, confirm Parma.
The two clubs were at loggerheads during the January transfer window, as both claimed to have a contract signed by the Le Mans striker.
The player risked a lengthy ban if the matter was taken to FIFA, but the Serie A sides opted to sort it out between themselves.
"We have found a solution," explained Parma technical director Andrea Berta. "Presidents Tommaso Ghirardi and Maurizio Zamparini discussed it and clarified the situation.
"We have torn up our pre-contract with De Melo and in June he will be registered with Palermo. In January 2009, the Sicilians will sell us 50 per cent of his contract."
Source: C4 Football Italia