South Korea tech firm LG Electronics Inc. said Friday it has decided to withdraw its lawsuit against Dyson filed earlier this week in Australia over a controversial advertisement, as they have reached an out-of-court settlement.

On Tuesday, the South Korean player asked an Australian court to ban British manufacturer Dyson's V6 vacuum cleaner advertisement that read "the most powerful cordless vacuum" and "twice the suction power of all cordless vacuums."

LG claimed that such remarks mislead consumers as its Cord Zero Cyking cleaner's suction power is twice as strong as Dyson's V6 product.

Following the agreement, Dyson will remove its advertisements in Australian shops by Dec. 7.

The LG's flagship cordless cleaner reached the Australian market in September. (Yonhap)