Nick Heidfeld have reached an amicable settlement and have chosen to part company with immediate effect.

The announcement, which effectively means the legal differences have beren settled out of court, will hopefully, according to the British team, "allow both parties to move on".

"Our disagreement with Nick has been the subject of much media coverage lately," said team boss Eric Boullier, "and we are pleased to have reached a swift and reasonable solution. Our separation process was already a painful one, and neither of us wanted to go through another legal hearing. We're very grateful to Nick for the highly valuable contribution he's made to the team. We certainly had good times together, in particular remembering our podium finish in Malaysia. He is a very strong and determined racer and we wish him every success in the future."

"Obviously I'm disappointed to be leaving Lotus Renault GP in the middle of the season," said Heidfeld. "I thought I could still make a big contribution to the team, but I have to see things as they are and I want to turn my attention to the future. We have taken the right decision by choosing to end our collaboration today. I would like to wish all the friends I made at Enstone a successful end to the season. One thing is for sure - I'll be back racing at the highest level soon."

It is unclear where Heidfeld goes from here. Ahead of the start of the season he was without a drive, but was the obvious choice to replace Robert Kubica when the Pole was involved in a rallying crash in February.

The German, who has 182 Grands Prix under his belt, made his debut with Prost in 2000, subsequently spending time with Sauber, Jordan, Williams and BMW. Currently ninth in the Drivers' Championship, his feat season was 2007 (BMW) when he finished fifth.