A lawsuit involving world No.1 golfer Rory McIlroy and his former agent is due back before the High Court in Dublin on Wednesday morning following last-minute talks to try to resolve the dispute.

The star, fresh from a weekend victory in Dubai, is suing Conor Ridge’s Horizon Sports Management over the cut his firm was taking from on- and off-course earnings.

The two sides held several hours of talks in the Four Courts complex on Tuesday in an attempt to avert a potentially long and bitter courtroom showdown over the multi-million pound contract dispute.

Late in the afternoon, the court heard progress was being made and Judge Brian Cregan agreed to allow negotiations to continue into the night.

McIlroy was in court as the talks took place, supported by business executive Barry Funston, who oversees the golfer’s charitable work through the Rory McIlroy Foundation, and his cousin Brian.

The star’s father Gerry arrived at the Four Courts on Tuesday evening as discussions went on.

Ridge also attended the court on Tuesday.

McIlroy had sued his former agent in a row over STG4.2 million ($A8.17 million) he paid in fees.

But the dispute was expected to have involved arguments over tens of millions in lost commissions and earnings from potentially massive sponsorship deals and tournament wins.

The court case had been expected to last up to eight weeks.

It centres on McIlroy’s contract with Dublin-based Horizon and two other linked companies, the Malta-based Gurteen and Canovan Management, also based in the Irish capital.

The golf star, who took up the game as a youngster in Holywood, County Down, and has a home in Florida, claims the terms he signed were inferior to those given to other top-10 players including fellow countryman and major-winning friend Graeme McDowell, who was in the same stable.

Since McIlroy’s split with Horizon in 2013, his business interests have been overseen by Rory McIlroy Incorporated, which is headed by Donal Casey, formerly of Horizon, his father and Funston.

Horizon is counter-suing the four-time major winner for breaking his contract early.

The case is due back before the judge at 11am (local time).