West Ham will be able to boast the second biggest stadium in the Premier League after settling a legal dispute out of court.

The club took their row with the London Legacy Development Corporation (LLDC) to the High Court and on Monday announced an agreement which will enable them to increase the capacity of the London Stadium to 66,000.

The Hammers opted for legal action after two years of unsuccessful talks during which time they have been restricted to selling just 57,000 tickets for their home games.

The club say the new agreement reached with E20, a subsidiary of LDC, means that, subject to regulatory permission, they will be now able to sell up to 60,000 tickets for their games and leaves scope to increase that to 66,000 seats in the future.

West Ham say the resolution of the row, which centred on the cost of making the additional seats available and the revenue from them, will result in more funding for E20 and significant extra match-day revenue for the club.

The Hammers already boast the highest number of season-ticket holders in London and say and the new agreement gives them the chance to reward thousands of fans on a waiting list.

In a joint statement, Lyn Garner, chief executive of E20, and West Ham vice chairman Karren Brady said: “West Ham United and E20 will now work together to maximise this magnificent stadium for the benefit of fans, our community and the public purse.

“Both parties are fully committed to making the London Stadium the jewel in London’s crown that we all know it can be.”

West Ham moved into the old Olympic stadium in Stratford in 2016, having signed a 99-year lease, paying rent of £2.5million a year.

The new arrangement will see the London Stadium become the largest football stadium in London and the second biggest in the Premier League behind Old Trafford.

The club say the increase in capacity will also make the stadium a more attractive proposition for a potential naming rights partner.