American International Group Inc, former CEO Maurice Hank Greenberg and former CFO Howard Smith said on Monday they have agreed to resolve their various legal disputes in private arbitration.

The agreement signals a reversal in the contentious relationship between AIG and its former executives.

Greenberg has been embroiled in legal disputes with the insurer since he resigned in 2005, after running the company for four decades.

AIG, Greenberg and Smith said in a joint statement that the arbitration would begin no later than Oct. 15, 2009, and end by March 31, 2010.

With the appointment of Robert Benmosche as AIG's chief executive, relations between Greenberg and AIG have thawed, both men said in interviews with Reuters last week. Greenberg said at that time that he wanted to settle outstanding litigation with AIG.

(Reporting by Joe Rauch)

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