Nike says the art collective which made "Satan Shoes" that purportedly contain a drop of human blood in the soles has agreed to issue a voluntary recall as part of a legal settlement.

The $1,018 (£740) trainers are modified Nike Air Max 97s. Only 666 pairs were made and all but one have been shipped.

The collective MSCHF will offer full refunds to customers in order to remove the shoes from circulation, Nike said.

The settlement resolves a trademark infringement lawsuit filed by Nike.

The controversial shoes were produced by the Brooklyn collective in collaboration with rapper Lil Nas X, who held the last pair so he could choose the recipient. MSCHF said it would keep the final pair of shoes.

No further details were made public about the settlement, which includes the Jesus Shoes produced by MSCHF in 2019 also using the Air Max 97 as a base.

"MSCHF altered these shoes without Nike's authorisation. Nike had nothing to do with the Satan Shoes or the Jesus Shoes," Nike said in a statement.

Limited edition shoes can fetch higher prices among collectors so it is not clear how many - if any - customers will return the products.

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Nike sued MSCHF last week claiming the "Satan Shoes [were] likely to cause confusion and dilution and create an erroneous association" between MSCHF's products and the company. But MSCHF said the shoes were "individually-numbered works of art" and did not sow confusion.

Siding with Nike, a federal judge issued a temporary restraining order last Thursday.