Deutsche Bahn (DB) and Bombardier Transportation have reached an out-of-court settlement on several vehicle projects.

Both the parties have agreed to not to disclose the settlement details.

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Rail technology firm Bombardier was sued by Deutsche Bahn for $374m in damages over alleged serious defects with brakes and wheels.

The German rail firm DB has also demanded a further €160m on issues with other trains.

"The settlement is an encouraging sign for our future cooperation."

The latest settlement covers Berlin S-Bahn vehicles, regional and commuter trains in Bavaria, North Rhine-Westphalia and Baden-Württemberg, as well as the TALENT 2.

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Deutsche Bahn member of the managing board for compliance, data protection, legal affairs and corporate security Gerd Becht said: "We have worked intensively in recent months towards a solution to this extremely complex and difficult situation and thus achieved a settlement acceptable to both sides."

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Bombardier Transportation president Lutz Bertling said: "The settlement is an encouraging sign for our future cooperation."

In a separate development, Bombardier Transportation revealed that it won contracts from the Düsseldorf (Rheinbahn) and Cologne transport authorities (KVB) to deliver 62 FLEXITY light rail vehicles.

The $68m contract with KVB requires Bombardier to supply 20 vehicles.

Rheinbahn’s contract for 42 vehicles is valued at approximately $135m. The deal includes an option for 16 additional vehicles.

The light rail vehicles to be built for Düsseldorf and Cologne will replace the region’s existing fleet of Stadtbahnwagen Bs.

Bombardier plans to supply Düsseldorf’s vehicles between 2017 and 2020, while the units for Cologne are planned to be delivered between 2020 to 2021.