Karachi, Aug 27 - The Pakistan Cricket Board (PCB) Thursday agreed to drop its court case against the International Cricket Council (ICC) over a dispute on the hosting rights of the 2011 World Cup after reaching a settlement with the game's governing body.

The resolution was reached during a meeting between ICC President David Morgan and PCB chairman Ijaz Butt at the ICC office in Dubai.

'In an agreement with the commercial arm of the ICC, the PCB will retain its host fees and also receive an additional payment as reasonable compensation for loss of hosting rights that it would have enjoyed had it hosted the matches on Pakistan soil,' an ICC statement said Thursday.

'It was further agreed that the PCB would be free of its liabilities and obligations associated with hosting matches during the tournament, including the location of the tournament secretariat which had originally been set for Lahore,' it added.

Morgan welcomed the development. 'This resolution is good for world cricket and provides an improved platform for the ICC Cricket World Cup 2011 as we now have a degree of certainty surrounding the event that was not there while the dispute was ongoing,' he said in a statement.