They claimed that Paul owed them more than £100,000 from their days with the chart-topping group.

After a bitter wrangle which ended with the case being taken to the High Court last week, Paul, 37, agreed on a settlement halfway through the hearing.

Last December Bizarre revealed how Rick and Bruce issued a writ against Paul and his dad John, who acted as the band’s manager. Rick, 40, and Bruce, 38, claimed Paul and his father had not stuck to The Jam’s original contract in 1974 that all profits, with the exception of songwriting royalties, would be equally split.

The new settlement is worth more than £100,000 to Bruce and Rick and includes a new contract which states that all royalties will now be paid direct to them and not via a management company.

A spokesman for Rick and Bruce says: "They feel vindicated in bringing the action. It was a shame it had to end like this. I think it would be fair to say that any friendship is now finished."