Seven's decision to negotiate an out-of-court settlement in a multi-million-dollar claim against the AFL came after the rival Nine Network staked its strongest claim yet to retain the broadcast rights.
A consortium containing Nine is understood to have indicated to the AFL that the league's request of A$140million a year for the TV rights was within its capabilities, albeit under certain conditions.
While Seven's decision to mediate with the AFL, one of 22 media and sports entities it is suing over the demise of its pay-TV arm C7, eased tensions with the AFL, Nine's plans have intensified the rights war.
The Seven court backdown came after a weekend of negotiations between several media players left the AFL confident it would secure the A$140million a year it is seeking for 2007-2011, reports Australia's Herald Sun.
Nine's alliance includes pay-TV station Foxtel and News Limited.
The move by Seven to settle out of court is positive for the AFL, especially as clubs were told in late September that the legal battle would cost football A$8million if it ran its course in court.
Seven is seeking more than A$1billion in damages from the claim.
