Affordable Car Hire lodged $15 million counter-claim against Avis Budget in May 2017 after the US car hire giant had first lodged a $2.2 million claim in a dispute over payment.

A court document dated October 3 confirms the action has been settled.

Affordable Car Hire said in a statement: “Affordable Car Hire today reports that it has resolved the lawsuit between it and Avis Budget Car Rental, LLC that had been pending in the United States District Court for the District of New Jersey.

“The resolution fully and finally disposes of both the litigation and all claims made in that litigation, on confidential terms.

“The lawsuit has now been dismissed, with prejudice.”

Chief executive Angela Day said: “We are unable to reveal specific details of the case however we are absolutely delighted that the case has now been officially resolved.

"We would like to thank all of our loyal customers who have stood by and supported us over the past two very difficult years.”

Day added the resolution would mean she would now be able to move forward with Affordable Car Hire, grow the business further and forge new partnerships with trade partners.

TTG has approached Avis Budget for a statement.