The Italian dropped his tribunal against Manchester City - in a last-ditch bid to save his Etihad career.
Balotelli was due to appeal to the Premier League against the club's decision to fine him £240,000 over his on-field discipline last season.
But after late talks, he pulled the plug on the hearing yesterday morning.
Taylor said: "We are pleased this has been sorted. It's not been a good situation.
"It's been unfortunate the way it has stayed festering, so we are pleased they have reached an agreement without going to a tribunal.
"Hopefully, this will improve matters now between the player and the club. We shall see."