Star bear Knut to stay in Berlin

Knut has delighted the crowds and proved to be a money-spinner

Berlin Zoo has agreed to pay 430,000 euros (£370,000) to another German zoo in order to keep its celebrity polar bear and star attraction Knut.

Knut's father came from Neumuenster Zoo, which claims not only legal ownership of Knut but also a slice of the revenue he has generated.

Berlin Zoo offered Neumuenster 350,000 euros, but the latter sought 700,000 before the settlement was reached.

Knut's antics as a cub made him a celebrity after his birth in 2006.

In 2007 alone Knut generated more than 5m euros in extra income for Berlin Zoo, from the sale of tickets and Knut-branded merchandise.

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Footage of Knut in March 2007, shortly before his first public appearance

Knut was controversially hand-reared after his mother rejected him.

Berlin Zoo now sells a big range of Knut-branded goods, including soft toys, jigsaws and mobile phone ring tones.

Neumunster Zoo loaned Knut's father, Lars, to Berlin for breeding in 1999, on the understanding that the first cub he fathered would eventually be returned to them.