Former West Ham midfielder Peter Butler will join neighbouring fellow Super League side T-Team next season as coach and manager after that team abandoned hope of landing former England and Liverpool striker Robbie Fowler for the role of player-manager.
The newspaper quoted Terengganu Football Association president Che Mat Jusoh as saying that the state side and Butler parted had ways by mutual consent.
"We have reached an agreement with him (Butler) and he is officially not our coach anymore. He respected our position and we respected his," Che Mat said without giving details on compensation.
At the time of his sacking Butler's contract had 15 months to run.
Butler was slapped with a six-month ban in September for speaking to the media after he disciplined two players who confessed to breaking a curfew before a Malaysian Super League match.
"I am very pleased that the problem has been settled," Butler was quoted as saying.
"It was never about money. The most important thing was principal. I wish the TFA all the best, even with the players involved in the controversy, I wish them well," he added.
The much-travelled coach in Southeast Asia had successfully appealed his ban to the Football Association of Malaysia and Terengganu had been ordered to pay his remaining salary.
Butler is expected to sign a deal with T-Team this week.
"He is by far the best person we feel can lead the team to greater heights, especially in instilling discipline in the players," Terengganu Youth and Sports Committee chairman Rozi Mamat was quoted as saying of Butler.
Terengganu has yet to appoint a new coach.