Watford will reveal today that former chief executive Mark Ashton has withdrawn his High Court claim for the £300,000 he believed was owed to him by the Hornets’ parent company and will make a “significant contribution” to their legal costs.

Ashton claimed Watford Leisure Plc agreed to pay him £300,000 following his resignation in December and issued legal proceedings for breach of contract on May 29, 2009 after he failed to receive the first two instalments.

The former West Bromwich Albion goalkeeper accused the club of failing to pay him two sums of £100,000 in February and May, with the third apparently due in July.

But today Watford will release a statement confirming court proceedings had been withdrawn by Ashton and, as a result, the club’s parent company would be making no payment to their former employee.

Ashton’s successor Julian Winter said: “Throughout, the club has maintained that Mr Ashton’s claims were without merit. I am pleased that Mr Ashton has withdrawn his claim and that he will be reimbursing the club for some of the costs incurred.”

The club’s solicitor, Robert Ryall of SA Law, said: “This is the outcome we expected for our client and wholly vindicates their position.”

Ashton joined Watford from West Brom in 2004 and was part of the board when Watford gained promotion to the Premier League in 2006.

But he resigned from his position as chief executive on December 11 following the surprise departure of chairman Graham Simpson the week before.

Ashton took up a similar role at Wycombe Wanderers on February 12, when he also joined the board of rugby club London Wasps, who groundshare with the Chairboys.

But he resigned on May 29, stating he wanted a new challenge outside of football.

Watford were always confident they would not be forced to pay the £300,000 Ashton claimed was owed to him.

At the club’s fans forum in September, Hornets chairman Jimmy Russo said: “It has been well reported that Mark Ashton is suing the club for circa £300,000 in a compromise agreement that the club had set out with the previous regime.

“Julian and myself have done an incredible amount of work on this one and it is still in the hands of the lawyers.

“But I am absolutely confident that it will not cost this club one single penny.”