Manchester United and David Moyes have reached an agreement for the terms of his contract termination, the LMA have confirmed.
Moyes was sacked just 10-months into a six-year contract on Tuesday morning, leaving over £20m in future wages up in the air.
Reports surfaced that Manchester United had capped Moyes' settlement to £5m –12-months salary – because he had failed to reach Champions League qualification.
News of the sacking was leaked on Monday afternoon, leaving Moyes in a state of confusion before his sacking was finally confirmed around 16-hours later.
Manchester United denied that they had leaked the news of his sacking, instead insisting that a decision hadn't been made when the reports emerged.
The LMA criticised the handling of the sacking while former boss Sir Alex Ferguson also admitted he was left upset by the way it was handled.
Now the LMA have confirmed that both Manchester United and Moyes have agreed a severance package. Although no figures have been disclosed, it is beleived to be a multi-million pound buyout.
The statement read: "The League Managers Association and Manchester United are pleased to confirm that terms of settlement have been agreed between the Club and David Moyes in respect of the termination of his employment.
"A settlement agreement is in the process of being finalised. No further comment will be made in relation to this issue."
Manchester United are now setting about hiring a new long-term manager for next season, with Ryan Giggs taking charge of first team matters for the rest of the season.
Carlo Ancelotti has been linked with the Old Trafford post while Louis van Gaal remains favourite.