Allen & Overy (A&O) has agreed a compromise deal over the move of partner Euan Gorrie to Wall Street leader Simpson Thacher & Bartlett – averting months of wrangling over restrictive covenants.

The deal will see the UK lawyer join Simpson Thacher in February, although the magic circle firm is still refusing to lift covenants preventing Gorrie from advising top banking clients such as JP Morgan Chase and Deutsche Bank.