The longstanding feud between The Walt Disney Co. and two former board members ended abruptly Friday when the two sides agreed to settle their dispute and resume working together.

As part of the settlement, former board members Roy Disney and Stanley Gold agreed not to propose a rival slate of directors or submit any shareholder resolutions for five years. In addition, the two men agreed to dismiss all pending lawsuits they have against the company. Mr. Disney will serve as Disney’s director emeritus and a consultant to the media giant. The agreement puts to rest years of battling by the two sides over the company’s direction.

The ongoing fight led Disney’s board to strip CEO Michael Eisner of his chairman’s title, and most recently triggered a lawsuit filed by Mr. Disney and Mr. Gold challenging the naming of Robert Iger as CEO-elect.

In Friday’s settlement, Mr. Disney and Mr. Gold went on record expressing confidence in Mr. Iger and acknowledging the outgoing Mr. Eisner’s contribution to the company.