Leicester City have agreed to pay £3.1m to the EFL to settle a dispute over Financial Fair Play regulations that arose from the 2013-14 season.

The EFL ruled that the club had broken the £8m cap on losses during their Championship-winning campaign by posting a deficit of £20.8m.

Leicester have argued that £13m of it was "allowable" as it included bonuses arising from promotion and academy improvements.

The EFL has confirmed that a settlement with Leicester has been reached, and acknowledged that the club "did not make any deliberate attempt" to break the FFP rules and instead misinterpreted them.

"The EFL and the club have reached an agreement to settle a dispute between them arising out of the Financial Results of the club in 2013-14," read a statement released on Wednesday.

"The club was deemed to have breached the EFL's Championship Financial Fair Play Rules ("the Rules") at the time, but proceedings were stayed pending the outcome of a legal challenge by Queens Park Rangers against those rules. That challenge by Queens Park Rangers is on-going.

"In reaching a settlement, the EFL acknowledges that the club did not make any deliberate attempt to infringe the rules or to deceive and that the dispute arose out of genuine differences of interpretation of the rules between the parties. All relevant matters were taken into account when determining the quantum of the settlement.

"The agreed settlement of £3,100,000 is in full and final settlement of all and any claims by the EFL against the club and its officers, in respect of the FFP Regulations for season 2013-14."

Leicester finished top of the Championship in the 2013-14 season as Nigel Pearson's side totalled 102 points from 46 games before going on to win the Premier League title two years later.