Joey Beauchamp and Oxford United have reached an out-of-court settlement over the winger's contract dispute.

Part of the deal is understood to include an up-front cash payment, and part is for a testimonial at the Kassam Stadium.

The 31-year-old midfielder, voted United's 1990s player of the decade, was released by the third division club last summer.

But he claimed his two-year contract, from 2000 when Denis Smith was in charge, stipulated a 12-month extension to the deal had United been able to restart building work on their new stadium.

Last season, Beauchamp developed a seemingly incurable toe injury, and U's chairman Firoz Kassam stated that the extra year was not legally binding because the deal had been with Oxford United Football Club.

When work got under way on the new ground, the contract was agreed with Firoka Stadium Ltd - a company owned by Kassam - and not by United.

Beauchamp took up his case with the Professional Footballers' Association and a settlement was reached last week.

Beauchamp said: "It's been agreed and I've now got the money through.

"I can't say any more than that because it is a confidential agreement, but I'm happy with it.

"Part of the deal is that I can have a testimonial which will be great. Hopefully, I can get a high Premier League team and get a good-sized crowd, but I've literally just started thinking about it, so I don't know when the game could be and who we could get.

I'll see what connections I've got and start making inquiries."

Kassam said: "I'm the one who offered Joey a settlement in the first place, so yes, I'm quite happy with it.

"I have offered him something and come back and offered him something more, but it's a confidential arrangement, so I don't want to say more than that. If a testimonial is a part of it, that is something we would announce."

Kassam said his decision to make Beauchamp an offer - when he felt he was not legally obliged to - reflected the fact he had been such a loyal player for United over the past 13 years.

Beauchamp was offered a package to release him from his contract earlier this year. That deal would have included a testimonial, but the winger wanted to carry on playing if at all possible.

After joining United as a trainee in 1989, he made 428 league and cup appearances in two spells for the club he had always supported as a child.

He also made Oxford £925,000 in transfer fees. He was sold, against his wishes, to West Ham for £1m in 1994, and Smith bought him back from Swindon Town for just £75,000 some 16 months later.

Last month he had the operation he needed on his troublesome toe, which restricted him to just three league appearances last season, but he says he is still in discomfort.