The members of the Velvet Underground have settled a long-running lawsuit with officials at the Andy Warhol Foundation over the visual rights to one of the artist's most iconic images.

The bandmates sued the Warhol Foundation in January, 2012 after learning of plans to license the banana design that featured on their 1967 debut album The Velvet Underground & Nico for iPhone and iPad sleeves and cases.

The settlement, which was disclosed in New York on Wednesday (29May13), halts a trial that was scheduled to begin in July (13).

Warhol, who became a friend and mentor to Velvet Underground stars Lou Reed and John Cale, designed the banana image for the album cover.

The bandmates' lawsuit sought an injunction to prevent the foundation, set up in Warhol's will, from licensing the image. The keepers of the artist's legacy maintained the Velvet Underground stars had no trademark rights to the image.

Details of the settlement have not been released.