Department store Myer has reportedly withdrawn its application for injunctions against designer Kym Ellery, following a dust-up over her partnership with rival David Jones.
Ellery has issued a media statement claiming the withdrawal occured during court proceedings today.
If granted, the injunctions would have run until trial.
It is understood the furore first erupted when Ellery offered David Jones her autumn/winter 2013 line, which was due to launch as part of Myer's seasonal collection.
The Ellery collection has been exclusive to Myer since 2011, with an exclusivity contract allegedly in place.
However, diffusion line L'America, headed up by Ellery, also launched through David Jones over summer 2012.
Ellery has reportedly been cleared to supply David Jones with her latest mainline collection following today's events.
The range will launch nationally from February 2013.
Ellery will also be involved in the David Jones seasonal fashion launch.
A final resolution in the dispute will be handed down in a few months.