The project was completed in 2011 at a cost of £152m but has been dogged by a series of legal rows.

An initial legal dispute over cost overruns and late delivery of the project saw BAM Nuttall pay the county council £33m in an out-of-court settlement in 2013 to cover defects and extra work.

Then in 2020 the council launched another legal action after it claimed further defects had appeared on the busway.

The claim was being defended by BAM Nuttall and heading for court until a sudden announcement by the council on Monday.

It said: “The County Council has been working hard to ensure the long-term future of the Guided Busway, as a safe, sustainable and effective part of our local infrastructure, which millions of passengers rely on.

“Following positive discussions with BAM Nuttall, the case will no longer be going to court as all parties have reached an undisclosed, confidential settlement.

“This settlement gives the council the confidence it needed to secure the long-term future of the busway.”