Sebastien Bourdais has settled his legal dispute with Toro Rosso after the Faenza based outfit fired him ahead of the Hungarian Grand Prix.

While the Frenchman's future with the Red Bull owned team had been the subject of paddock speculation for some time, when the chop finally came, four days after the German Grand Prix, the four-time Champ Car champion admitted surprise, to put it mildly.

"I am very disappointed and shocked by the decision," he said in a statement, adding. "I consider that Toro Rosso has breached its contractual duties towards me and that the team's decision is in clear violation of its obligations under the agreement. I have instructed my lawyers to review the situation including the possibility of issuing legal proceedings."

However, it is understood that Bourdais, who is managed by Nicholas Todt, has now reached a private settlement with the Faenza team thought to include his pay for the remainder of the season and damages.

Bourdais' seat was subsequently filled by reigning British F3 champion Jaime Alguersuari who became the youngest driver ever to start a World Championship Grand Prix when he lined up on the grid in Hungary. The 19-year-old subsequently finished the race in fifteenth.

Bourdais is thought to be considering returning to racing in America, though it is not clear what discipline he is considering.