Queen's Club will be sold to its members by the Lawn Tennis Association for a reduced price of £35 million.
Queen's Club will continue to host the Stella Artois championships
The LTA put the club - home to the Stella Artois Championships - up for sale prior to a move to the new National Tennis Centre in Roehampton.
But a number of Queen's members had objected to the plan, claiming the club was not theirs to sell.
LTA president Stuart Smith said: "The proceeds will be used to further invest in the development of the sport."
The fee is £10m less than the deal agreed between the respective parties earlier in the year, but it ensures a swift end to the legal action over the ownership of the club.
Queen's Club chairman Alexander Anton said: "This is the best outcome for members."