A public row between Ramsay and Hutcheson ensued after Hutcheson, who helped Ramsay buy his first restaurant in 1998 and set up GRH, left his position as chief executive in October 2010.
Hutcheson claimed he was pushed out of the company and subjected to a 'public hanging' by Ramsay who responded by writing an open letter to his mother-in-law Greta via the Evening Standard where he accused his father-in-law of being 'manipulative and controlling'.
Ramsay's in-laws, their son Adam and his son Christopher appeared at court in October 2011 for a preliminary hearing where it was revealed they were taking the chef to tribunal for unfair dismissal and unpaid holiday pay. Chris Hutcheson was also claiming unpaid wages, age discrimination and a failure to provide a written contract.
Meanwhile Ramsay was in the midst of legal action against Hutcheson over allegations to do with his behaviour at GRH.
However, a statement released today confirmed that employment tribunal claims and civil litigation claims between the two parties had been dropped. The terms of the settlement were not revealed, however Hutcheson is now no longer a shareholder in GRH.
The statement said: "We can confirm that Gordon Ramsay and Gordon Ramsay Holdings have reached a settlement with Chris Hutcheson and other members of the Hutcheson family.
"The terms of the settlement are confidential but we can confirm that Chris Hutcheson is no longer a director or shareholder of Gordon Ramsay Holdings and all civil litigation and employment tribunal claims brought by each of the two parties and other family members have been withdrawn."