Limerick FC will be allowed to apply for a League of Ireland licence following talks aimed at resolving the club's legal action against the Football Association of Ireland (FAI).
The club, which late last year was the subject of a failed examinership process, had initiated proceedings against the FAI after it was not invited to apply for a licence for the 2020 season.
Munster Football Club Ltd, who trade as Limerick FC, had maintained that under the FAI's own rules they should have been invited to apply for a First Division licence this year.
The High Court heard the case on Thursday and Friday where it was told that talks to resolve the issue were ongoing. The Court had adjourned the case until Monday.
In a statement on Friday evening, the FAI announced that Limerick FC would be allowed to apply for a licence after all.
"The Football Association of Ireland confirms that Limerick Football Club can apply for a licence to compete in the SSE Airtricity League First Division and the underage leagues for the 2020 season," the statement said.
"Following talks with the club this week, the FAI are satisfied that Limerick FC, who trade as Munster Football Club Limited, came out of Examinership on December 11th, 2019.
"The Independent Club Licensing Committee is due to meet next month to assess all applications from Premier & First Division clubs ahead of the 2020 season kicking off."
Earlier this week Limerick United was launched with the aim of providing a bottom-up reboot of football in Limerick, and to replace Limerick FC.
The club was launched by its interim chairman and former chief executive of Limerick and City Council, Conn Murray, who outlined a plan to bring League of Ireland football back to Limerick in the future.
“What we are trying to do is start as sustainable growth relative to League of Ireland soccer here in Limerick. The ambition (for a senior men’s team) is 2021, but if someone tells me that is too ambitious, I will listen," Murray said at the launch.