Team Lotus will retain its green and yellow identity in Formula One next year despite being reborn as Caterham.
Group Lotus and the Tony Fernandes-led team jointly announced on Wednesday that the bitter naming dispute and legal battles have been called off.
The deal, ending amicably according to a media statement, results in Renault becoming Lotus in 2012 and Team Lotus adopting the name of Fernandes' recent acquisition Caterham, a niche British lightweight sports car maker.
It means full control of the historic Lotus name finally falls into the control of Dany Bahar, the Group Lotus chief.
"We understand that this has been a very difficult and confusing time for the fans of the sport and the Lotus brand," he said.
In 2010 and 2011, under the Lotus Racing and Team Lotus names, Fernandes' team has run in the historic green and yellow colours of the fabled brand.
"We are proud of what we have achieved by bringing the Team Lotus name back to Formula One when many tried," said the team's chief executive Riad Asmat.
We are excited about owning our own future and being in control of our own destiny
"Although we are sad to say goodbye to Team Lotus we are excited about owning our own future and being in control of our own destiny. Now we have no one to be compared to.
"We make our own history and we will remain green and yellow," he announced.