Allied Newspapers Limited have reached a private agreement with former managing director Adrian Hillman concerning "any claims they have or may have had against each other. As a result, all litigation is being withdrawn.",

Mr Hillman left his post after an inquiry was launched into alleged editorial interference.

The inquiry, which begun in March 2016, involved allegations made by blogger Daphne Caruana Galizia that Mr Hillman may have received bribes from Keith Schembri after it was ascertained that he held a secret company on the British Virgin Islands.

Mr Hillman demanded compensation in front of the Industrial Tribunal after he offered his resignation on May 25, claiming constructive dismissal.

In September, Allied Newspapers Ltd filed a judicial letter asking Mr Hillman to refund company money he used without authorisation.

In a statement, OPM chief of staff welcomed the development.

"I welcome the news that Allied Newspapers and Adrian Hillman have reached a positive agreement and all litigation is being withdrawn.  Given that part of the claims attributed wrongdoing by Mr Hillman and companies belonging to my group, this result proves that there was no such wrongdoing as had been alleged.

"The dishonest and highly politicised campaign against me personally has been proved to be baseless.

"Now that this matter has been resolved, for the sake of transparency, I urge Allied Newspapers to publish its independent inquiry."