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The Apple logo hangs in a glass enclosure above the 5th Ave Apple Store in New YorkReuters

Tech giants Apple and Google have agreed to settle all their outstanding patent disputes.

The iPhone maker reached agreement with Google's Motorola Mobility unit, according to a joint statement from the companies. However, the companies will not cross-license their patents.

"Apple and Google have also agreed to work together in some areas of patent reform," the statement said.

The legal battle between Apple and Google revolves around Google's Android operating system, which Apple's late co-founder Steve Jobs called a "stolen product".

Smartphones based on Android OS has shrunk Apple's smartphone market share across the globe. About 80% of all smartphones sold every year use Android.

Apple has accused other smartphone makers using Android of infringing on its patents and filed a number of lawsuits against them. Android smartphone makers have in turn filed patent cases against Apple.

Korea's Samsung, the world's biggest smartphone maker, has emerged as Apple's arch rival and the lawsuits between them have been fiercer and widely reported.

Earlier in May, a jury in California ordered Samsung to pay Apple $119.6m (£70.9m, €86.2m) in damages for infringing on a number of its patents, iPhone features such as slide-to-unlock and search technology.

Samsung is the smartphone market leader at present, accounting for one in three of all devices sold last year. Meanwhile, Apple is steadily losing market share to low-cost rivals including Lenovo, HTC and Huawei.

Apple is looking to ban Samsung from selling its devices in the key US market.

About two years ago, a federal jury found Samsung was infringing Apple's patents and asked the South Korean electronics giant to pay around $930m to Apple. Samsung is appealing against the decision.