Watford and Carlisle have agreed a compensation package over the transfer of defender Tom Aldred.
Aldred completed his move to the Hornets a fortnight ago and the clubs have been in discussions over a fee since.
The 19-year-old rejected Carlisle's offer of a contract extension but because he is under 24, the Cumbrian side were due compensation and an undisclosed fee has been agreed.
A statement from the Hornets said: "Watford can confirm that they have agreed a compensation package for an undisclosed fee with Carlisle United for defender Tom Aldred.
"This therefore means that both clubs avoid taking the matter to a tribunal."
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