Guy Sebastian’s former manager has admitted to ripping off the pop star after almost a decade of denials, bringing a shock end to one of Sydney’s most bitter celebrity court battles.

Titus Day confessed on Wednesday that he withheld large sums of money from Sebastian as the pair settled their civil suit out of court.

WATCH THE VIDEO ABOVE: Guy Sebastian’s manager admits ripping off star client

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“I’m just happy it’s over. It’s been pretty full-on,” a battle-scarred Sebastian told 7NEWS moments after the settlement was reached.

The pop star dramatically split from his music manager in 2017, with Day accused of taking more than a million dollars in royalties and fees.

After years of denials, Day changed his tune in a statement released on Wednesday.

“During the time I was managing Guy, and after it, I made a number of regrettable decisions which have had painful consequences, not only for me and my family, but also for Guy and his family,” his statement said.

“Looking back on the latter half of the time when I was managing Guy’s career, I can see that I had become a poor steward of Guy’s income.”

Guy Sebastian speaks with 7NEWS. Credit: 7NEWS

Titus Day has admitted to ripping off the popstar. Credit: 7NEWS

The former friends reached an out-of-court settlement for Sebastian to drop his civil claim, with Day admitting “there were many instances in which payments that should have been passed on to Guy were not.”

“My management company’s failure to properly account for and pass on those payments to Guy was the result of my mistake,” he wrote.

“I accept that my failures at that time had a serious and regrettable impact on Guiy and his family, for which I apologise.”

“He’s apologised and taken some accountability and now we just move on,” Sebastian said. “I do wish it got here a long time ago and I think Titus does as well.”

The pair’s relationship began its sour note when Sebastian first launched civil proceedings in 2018.

In 2020, NSW Police arrested and charged Day with 61 counts of fraud. He was jailed for four years in 2022, serving seven months before being released on appeal in June the next year.

The legal stoush has been ongoing for nearly a decade. Credit: 7NEWS

Sebastian says he is glad it’s over. Credit: 7NEWS

That conviction was quashed late 2023, before a jury was deadlocked at a retrial last July.

Wednesday’s settlement ends federal proceedings.

“I’ve discontinued my claim and I’ve sort of forgiven him but I have no interest in it occupying my mind for too much longer,” Sebastian said.

Last year, the Director of Public Prosecutions said it wouldn’t pursue a third trial against Day.