Fitzroy, which still plays at amateur level in Victoria, launched legal action in December last year claiming the Lions' decision to adopt a new 'forward-facing' lion emblem was in breach of the 1996 merger agreement between the Melbourne-based club and the Brisbane Bears.
At the heart of the matter was Fitzroy's belief that the traditional 'side-on Fitzroy-style' lion be used by the Brisbane Lions in perpetuity - a belief not held by the Brisbane-based club.
The increasingly acrimonious wrangle reached flashpoint at a pre-trial hearing in May when counsel for the Lions accused Fitzroy of having a 'shrinking, if not vanishing' supporter base.
But with the matter heading for the Victorian Supreme Court the two parties entered into mediation, which has brokered the compromise.
As part of the agreement the traditional sideways lion will appear alongside the newer version for the next 14 years on all official club stationary and club publications as well as the Lions' official website for the shorter period of seven years.
The Lions issued a statement on Thursday night at the successful conclusion of the mediation talks.
"Both the Brisbane Lions and Fitzroy Football Clubs are pleased to reach this agreement and with the final terms of the settlement," it read in part.
"The two clubs have agreed that the side-on Fitzroy-style Lion symbolically represents the historic merger between the Bears and Fitzroy and the first 13 years of the Brisbane Lions competing in the AFL.
"Since the 1996 merger, the Brisbane Lions have participated in the AFL competition. The Brisbane Lions' home, away and clash guernseys - or any future club guernseys - have never been the subject of court proceedings and will not be changing.
"The Brisbane Lions wish the Fitzroy Football Club all the best in the VAFA and commend them on their strong grassroots community ties."
