Myer and Kym Ellery have reached a mutually agreed settlement in their battle over an exclusivity agreement.
The matter went to trial in Melbourne last week.
However, Ellery has now acknowledged the terms of the exclusivity agreement she signed with Myer in 2011.
“I understand that the contract I had to exclusively supply Myer was to operate until 2014. I am sincerely sorry that I also agreed to supply another retailer on an exclusive basis outside of my agreement with Myer," she said in a statement issued by Myer.
“I truly regret making such a mistake and going forward I will honour my agreement with Myer and will extend my supply of the Ellery collection to Myer until 2015.
"I am grateful that I have been granted the opportunity to also continue supplying my mainline collection to David Jones. I am looking forward to now being able to focus on my work again."
When contacted by ragtrader.com.au, a spokesperson for Ellery confirmed the outcome.
"Kym is very pleased that the litigation is behind her. She's now looking forward to supplying both Myer and David Jones with her Spring '13 collection entitled 'Renegade'."
Ellery and Myer have also reached a mutually agreement regarding her contribution towards the legal costs incurred by Myer in the proceedings.
Myer executive general manager merchandise Adam Stapleton said Myer is delighted that it will again be able to showcase the Ellery mainline collection for its customers.
“We have invested in Kym Ellery and the Ellery brand because we identified her potential as a talented Australian designer.
"We are pleased to reach a resolution where we continue to work with Kym and offer our customers her designs which they love,” he said.