Asos is understood to have paid damages to fashion group Arcadia to put an end to a legal dispute over copyright infringement.

The internet giant has made the payment following an Arcadia claim that Asos had copied the design of a pair of gladiator-style flat sandals produced by Topshop’s in-house design team.

The sandals went on sale in Topshop in April before a similar pair appeared on the Asos site, under its own-label.

The out-of-court settlement has avoided a potential legal battle between Topshop-owner Arcadia, owned by billionaire tycoon Sir Philip Green, and the online retailer.

A source said the payout was “at least five figures”. Asos has withdrawn the sandals in question from sale.

Both Asos and Arcadia declined to comment.