The two sides held several hours of talks in the Four Courts complex yesterday in an attempt to avert a potentially long and bitter courtroom showdown over the multi-million euro contract dispute.

By 4pm yesterday the court heard progress was being made and Judge Brian Cregan agreed to allow negotiations to continue into the night.

McIlroy was in court as the talks took place, supported by business executive Barry Funston, who oversees the golfer’s charitable work through the Rory McIlroy Foundation, and his cousin Brian McIlroy.

The star’s father Gerry arrived at the Four Courts yesterday evening as discussions went on.

Mr Ridge also attended the court yesterday.

McIlroy had sued his former agent in a row over €5.6m he paid in fees.

But the dispute was expected to have involved arguments over tens of millions in lost commissions and earnings from potentially massive sponsorship deals and wins on the course.

It had been expected to last eight weeks.

It centres on McIlroy’s contract with Dublin-based Horizon and two other linked companies, the Malta-based Gurteen and Canovan Management, also based in the Irish capital.

The golf star, who took up the game as a youngster in Holywood, Co Down, and now has a home in Florida, claims the terms he signed were inferior to those given to other top 10 players including fellow countryman and major winning friend Graeme McDowell, who was in the same stable.

Since McIlroy’s split with Horizon in 2013 his business interests have been overseen by Rory McIlroy Incorporated, which is headed by Donal Casey, formerly of Horizon, his father Gerry and Mr Funston.

The case is due back before the judge at 11am.