The Velvet Underground has settled its lawsuit against the Andy Warhol Foundation for the Visual Arts over rights to the iconic banana image the pop artist created for the band's debut album.

The settlement was revealed in federal court papers made public in New York on Wednesday, but the exact terms were not disclosed.

A trial had been set to begin in late July.

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Velvet Underground's founders had argued that Warhol's banana sticker design for the group's debut album had become an iconic symbol of the band. (Polydor/Associated Press )

In early 2012, the founders of the influential rock group filed suit against the foundation after it purportedly sold rights to the banana design to tech giant Apple, for use on products tied to the iPhone and iPad.

Velvet Underground founders John Cale and Lou Reed first began collaborating with Warhol in the 1960s. He became the group's manager and the musicians served as the house band at his famed studio The Factory. Warhol also designed the "Peel slowly and see" banana sticker image for the group's first album, The Velvet Underground & Nico in 1967.

Though the group disbanded, its debut is regularly cited on lists of the best albums of all time.

Cale and Reed, named as plaintiffs in the lawsuit, had argued that the banana design had become an iconic symbol of the band. They sought damages as well as an injunction to stop the foundation from licensing the image.

After Warhol's death in 1987, his namesake foundation took over his copyrights. Over the years, it has licensed some of his material to various companies, including Levi Strauss and Campbell's Soup.

With files from The Associated Press