Apple will be able to use the name iPhone for its new MP3, internet browsing-enabled mobile phone when it goes on sale in the US in June and the UK later this year the company has announced.

Under the agreement, between Cisco and Apple, both companies are free to use the "iPhone" trademark on their products throughout the world.

The dispute between the two company's arose last month when Cisco sued, claiming that Apple's use of the iPhone name was a "willful and malicious" violation of a trademark that Cisco has owned since 2000.

Both companies have said that they acknowledge the trademark ownership rights that have been granted, and each side will dismiss any pending actions regarding the trademark.

At the time, Apple chief Steve Jobs dismissed the lawsuit as "silly" and argued it was entitled to use the name because the phones; one a mobile phone the other a VoIP handset for the PC would not compete with each other as they offer different features.

Cisco fired back maintaining that both companies using the name to sell a phone would be confusing and lead to "deception among consumers" according to the lawsuit.

Further to both companies now being able to use the trademark, Cisco and Apple have also said they will explore opportunities for interoperability in the areas of security, and consumer and enterprise communications.