Mashaba was appointed coach of South Africa in July 2002
Former South Africa coach Ephraim 'Shakes' Mashaba has given up his legal battle to be reinstated as manager of Bafana Bafana.
Mashaba, who was dismissed by the South African Football Association (Safa) for breach of contract on 15 January, has said his attorneys had reached agreement with the body on a settlement.
Yet he declined to provide further details, saying only that the settlement would be signed 'soon'.
Albert Mokoena, Safa's acting chief executive, refused to comment on the matter, saying the organisation's lawyer had not yet informed him of a deal.
Safa originally suspended Mashaba on 7 January claiming he had selected a Nations Cup squad with players who were injured or who had not played recently and had failed to monitor the form of the country's foreign-based players.
Mashaba refused to allow the likes of FC Porto striker Benni McCarthy and Charlton Athletic defender Mark Fish to arrive late for training camp, thus prompting both to declare they would be no longer available for national duty.
Safa gave Mashaba a week to remedy the situation, which it said he had failed to do when the body dismissed the coach on 15 January.
In the meantime, Mashaba challenged his suspension in court, arguing that he had not been given a chance to defend himself.
The Johannesburg High Court overturned his suspension on 16 January, yet Safa insisted that the ruling would not affect its decision to dismiss Mashaba and appointed assistant coach April 'Styles' Phumo in his place.
Phumo, who has since led South Africa to defeats against Mauritius and Senegal, will be in charge of Bafana Bafana in Tunisia.
South Africa will contest Group D alongside Morocco, Nigeria and Nations Cup newcomers Benin.