Boro sued their Sky Bet Championship rivals and coaches James Beattie, Sean Rush, Ryan Needs and Darryl Flahavan after they left Teesside to join up with their former boss at St Andrew's.
The North East club argued that conditions in the backroom team's contracts meant they were unable to work together and with Monk until December this year, prompting the coaches to file a counter-claim.
However, a joint statement issued by the clubs said: 'High Court proceedings between Middlesbrough and Birmingham and its backroom team have ended with agreed settlement terms.
'Middlesbrough had commenced proceedings against Birmingham and its backroom team in relation to their move from Middlesbrough to Birmingham. Birmingham and its backroom team had defended Middlesbrough's claims and the backroom team had counter-claimed for damages against Middlesbrough.
'The parties have now reconciled their differences and agreed confidential settlement terms which bring matters to a conclusion.'
Monk parted company with Boro on Christmas Eve last year after spending a little more than six months at the helm and took over at Birmingham in March, two days before a 1-0 home defeat by the men from the Riverside Stadium.
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