British boy band One Direction are allowed to keep their name.

The 'What Makes You Beautiful' hitmakers - who are made up of Harry Styles, Niall Horan, Liam Payne, Zayn Malik and Louis Tomlinson - have agreed a deal to keep their moniker following a legal dispute with an American group bearing the same name.

One Direction were sued by the California-based punk group earlier this year, but music mogul Simon Cowell countersued the American band, accusing them of trying to ''cash in'' on the success of the 'One Thing' hitmakers.

However, both acts have now reached an agreement that allows both to continue using the name.

The US One Direction had applied to trademark the name long before Simon formed the British band on the UK 'x factor' in 2010.

British One Direction's debut album, 'Up All Night' was the first by a UK act to debut at number one on the US Billboard 200 all-genre albums chart.