British group One Direction have reached an agreement with a US band of the same name who had launched legal action against the former X Factor contestants.

An American band called One Direction claimed they had the name first and raised a $1 million lawsuit earlier this year after as a result of confusion over the title.

They also claimed they received abuse from fans of the British One Direction.

Both parties, however, have now reached a settlement on the case, with the US group set to change their name to Uncharted Shores - the title of their latest album.

The UK band had been insistent over their name and Simon Cowell's Syco group had countered the US group's claim by suggesting that they were merely looking to cash in on the Brits' success.

It's good news for One Direction as they prepare to release their second album 'Take Me Home' on November 12.