Dick Smith Foods has agreed to repackage its Temptin' biscuits following a settlement with Arnott's.

The latter company had threatened to take Dick Smith Foods to court over the packaging for its Temptin' biscuits, which bore a striking resemblance to Arnott's famous Tim Tam brand.

As of 19 September, Temptin' biscuits will have new packaging. The font used for the letter 'p' will be made thicker so that it matches the other letters, reported Packaging News.

Dick Smith said the money earmarked for its legal defence could now be devoted to "charitable and humanitarian causes".