The council confirmed on Monday that a consensual settlement agreement has been signed for Amey to exit the contract. As part of the agreement, the company will continue to provide highway services until at this September at the earliest, while an interim replacement contractor is found.

“That interim replacement will be sought as soon as possible, but will be in place no later than 1 April 2020,” a joint statement between the two parties read. “The full retendering of the project to find a permanent replacement contractor will take place during 2020 / 2021.

“All parties will be working closely in the coming months to ensure the smooth transition of services and staff."

A statement issued by Amey’s parent company Ferrovial over the weekend revealed that the agreement involves a payment of £215M to the council, of which £160M will be paid this year and the remaining amount over the next six years.

The dispute between the two parties centred on conflicting interpretations of the 25 year PFI contract which was awarded in 2010.

Before this week’s settlement, the case had gone through an adjudication dispute resolution process as well as appearing before both the High Court and the Court of Appeal.