The Official Receiver, which is liquidating the group after it collapsed with liabilities of £7bn and just £29m in cash, alleged that negligent failures by KPMG to detect misstatements in the accounts cost claimants’ extensive loss and damage.

KPMG said at the time it believed the lawsuit was without merit.

Commenting on the confidential settlement agreement, KPMG’s UK chief executive Jon Holt, told news agency Reuters: “I am pleased that we have been able to resolve this claim.

“Carillion was an extreme and serious corporate failure, and it is important that we all learn the lessons from its collapse.”

Meanwhile, auditing watchdog, the Financial Reporting Council, has yet to announce the outcome of its investigation into KPMG’s audits of Carillion.