NEW YORK (AP) - MasterCard Inc. said Thursday it will accept a $90 million settlement and discontinue its sponsorship of the 2010 and 2014 World Cup soccer tournaments, in a move that ends its legal dispute with FIFA.

MasterCard and soccer's governing body, the Federation Internationale de Football Association, have been fighting in court over MasterCard's right to sponsor the tournaments. A U.S. district judge ruled in December that FIFA did not honor its agreements with the credit card issuer when it awarded sponsorship rights to MasterCard's rival, Visa International Inc.

In May, a federal appeals court asked the lower court judge to review her ruling due to uncertainties over whether a 2006 contract was valid.

Following Thursday's announcement that MasterCard will end its sponsorship, FIFA said it is on the verge of agreeing to a contract with Visa. MasterCard had served as an official sponsor of the tournament since 1994.

In a conference call and interview, MasterCard's General Counsel Noah Hanft said the appeals court was looking at a "narrow question" and that the company's argument was supported by the court's decision.

"At the end of the day we felt we were in a very strong position," he said.

Chief Marketing Officer Larry Flanagan said the decision to end the relationship with FIFA was based on "irreparable damage" to the company's trust in the organization. He said MasterCard determined the sponsorship was "basically not worth it, based on the need to have an ongoing, collaborative relationship with the other party."

Flanagan said the settlement is in the best interest of shareholders. The settlement resolves all litigation in the U.S. and in Switzerland, where FIFA had wanted an arbitration panel to decide on the matter.

Flanagan also noted that MasterCard continues to sponsor UEFA's Champions League tournament in Europe and CONMEBOL's Copa America competition in Latin America.

In a statement FIFA President Joseph S. Blatter said he was pleased with the outcome. "FIFA has, first of all, resolved a problem," he commented, "and, secondly much more importantly has paved the way to a good, new partner that will support it and its manifold activities efficiently all around the world."

FIFA said the $90 million payment includes expenses, the cancellation of the disputed agreement and the settlement of a marketing dispute regarding the two hemispheres logo.

Of the settlement payment, $87.5 million is being paid to MasterCard in the second quarter and $2.5 million will be paid in the third quarter, according to a regulatory filing Thursday with the Securities and Exchange Commission.

In 2002, the FIFA World Cup had a cumulative television audience of 28.8 billion worldwide in 213 countries, according to MasterCard's Web site.

MasterCard shares gained $1.23 to close at $164.69 on Thursday.