Former Australia cricketer Stuart MacGill reached an out-of-court agreement over his pay dispute with Cricket Australia.

The cricketer filed a writ in 2015, saying he suffered multiple injuries and had ongoing health problems.

The writ stated that Cricket Australia failed to make $1.6 million due payment after MacGill retired.

The cricketer was also suing for more than $900,000 in interest.

According to Sydney Morning Herald, the two parties agreed terms on Friday, avoiding a possible trial from August 14. The two parties had sought mediation.

"We can confirm the case has been dismissed," a CA spokesman said.

Earlier, Stuart MacGill was advised by a Victorian Supreme Court judge to obtain legal advice after he appeared nervous and failed to articulate his case against Cricket Australia.