Judge Sebastian Prentis was told by an HMRC official that the agreement had been reached, meaning Dallaglio had agreed to settle the outstanding tax balance.

Appearing at the Insolvency and Companies Court this week, Judge Prentis said that the petition was dismissed and told the hearing: ‘I am pleased that this ends this saga.’

Dallaglio had been granted additional time to pay off his debt in May after HMRC officials had lodged a bankruptcy Petition in November last year.

The former England captain proceeded to try and raise funds by selling a property.

In separate litigation, HMRC also lodged a winding-up petition against Lawrence Dallaglio Limited, which is due to be considered on 11 October 2023.

The company, which is based at his £3m home in Richmond, south London, has been run by Dallaglio since 1997.

Dallaglio, who now does punditry work with ITV, was not at the hearing but represented by barrister Peter Head.