The former Firhill boss quit the club in January to become Arabs boss following the resignation of Peter Houston and he was followed to Tayside by assistant and former Celtic team-mate Simon Donnelly.
A statement released by the Jags said: "Partick Thistle and Dundee United advise that a full and final settlement has been agreed in respect of financial claims arising from the resignations of Jackie McNamara and Simon Donnelly earlier this year."
McNamara's former Partick captain Alan Archibald took over the Maryhill reins following his exit and led the side to the Irn-Bru First Division title.
But a legal row followed over the payment of an £80,000 compensation clause and reports last month suggested McNamara had issued his former employers with a counter-claim worth £40,000 for bonus payments for his part in helping Thistle clinch a place in the Clydesdale Bank Premier League.
But the row has now been smoothed over and Thistle said they were glad to put it behind of them.
Their statement added: "All parties were keen to resolve the situation amicably, without the need for arbitration, and all are pleased that the matter is now closed."
- Sports & Recreation
- Partick Thistle
- Simon Donnelly
- Jackie McNamara
- Dundee United
- Peter Houston