Microsoft and Google have resolved their legal differences over Google's hiring of former Microsoft executive Kai-Fu Lee, Microsoft announced late Thursday.

In a statement, Microsoft said, "The parties have entered into a private agreement that resolves all issues to their mutual satisfaction. The terms of the agreement are confidential and all parties have agreed to make no other statements to the media regarding it."

Google representatives could not immediately be reached to confirm the settlement.

Microsoft sued Google earlier this year after Lee joined Google in order to run the search engine company's research and development labs in China. Microsoft tried to enforce the terms of a noncompete agreement that Lee had signed upon joining the company in 2000, which would prohibit Lee from working on search-related activities for a competitor. The companies were scheduled to meet in court in early January to argue the case.

The IDG News Service is a Network World affiliate.