THE intriguing on-again, off-again relationship between St Kilda president Rod Butterss and the coach he sacked 10 months ago, Grant Thomas, seems to be on-again after successful mediation involving a Catholic priest finished with a handshake.

The pair also have resolved their million-dollar-plus financial battle and have confidentially settled the matter of the alleged $1.14 million loan Butterss extended to Thomas in 2001 when, as a fellow director of the club, he bought a home in Brighton for $2.3 million.

Butterss, whose leadership has come under increasing pressure since he launched his extraordinary public attack on Thomas last month, confirmed late yesterday that "all matters have been resolved" with the one-time close friend whom he last month described as a "virus" who needed to be "flushed out" of the St Kilda Football Club.

In the latest bizarre chapter of the relationship between the two men who took control of St Kilda in 2000, successful mediation finally took place over the past fortnight.

"We've shaken on it," Butterss said. "I have to tell you, it was a watershed."

It is believed that the pair have come to a financial arrangement under which Butterss will receive a portion of the money he said he was owed in a Supreme Court writ lodged in April this year. The agreement is expected to be signed off over the next seven days.

But Butterss denied allegations the pair had struck a mutual deal in which Thomas would support him when the seemingly inevitable challenge to his leadership took place later this year.

Despite the denial, Thomas seems to have completely changed his tune about Butterss. In the months that followed his shock sacking after the Saints' elimination final loss last year to Melbourne, Thomas had been privately scathing about Butterss' personal life.

"Rocket is the man to take the club forward and I've told him that," Thomas said yesterday.

Butterss yesterday did not rule out resuming an active friendship with Thomas. "The platform is there for that to occur," he said.

But Butterss refused to comment on the circumstances of the mediation, which hit its first hurdle in June when, according to Thomas, Butterss refused to attend a private meeting without chaperones fearing he would be assaulted.

Thomas, a practising Catholic, is believed to have made his peace with Butterss in the presence of a priest.

It is believed the Saints' chaplain, Father Michael Sierakowski, became involved at some point during the last month of the increasingly bitter feud.

"I'm very uncomfortable to talk about the 'how' part because I have an agreement with Thommo," Butterss said. "I am very relieved and any positive event has to be positive for St Kilda."

Asked whether a priest had been present, Butterss responded: "I'm not going to discuss it."

Asked whether he would be paid back the money he claimed he was owed, Butterss replied: "All matters have been resolved."

Butterss stunned his board and his senior playing group when he publicly attacked Thomas on radio SEN back in June. The board had not been warned of the outburst and later chastised the president.

Several days later at a pre-game function, Butterss vowed never again to publicly discuss "the former coach" but less than a week later did just that when questioned by a journalist about a new Thomas allegation.

After the SEN incident, Butterss called Thomas, according to the latter, suggesting the pair meet at The Deck bar, a Brighton restaurant, but Thomas told the Saints president he was "delusional" because the meeting immediately would attract media attention.

Previous unofficial mediation sessions have taken place at various locations including the home of Lindsay Fox at the start of the 2005 season after the pair's feud was first revealed by The Age.

Butterss said in May this year when the litigation became public: "I'd like to think that mediation was possible, as I did when this issue came to light a number of months ago, but it doesn't appear to be the case at the moment."