The PGA Tour, European Tour and rival Saudi-backed LIV Golf circuit announced a landmark agreement on Tuesday to merge and form a commercial entity to unify golf.

Additionally, the three organizations said in a joint news release that they will work cooperatively to allow a process for any LIV Golf players to reapply for PGA Tour and DP World Tour membership following the 2023 season.

"After two years of disruption and distraction, this is a historic day for the game we all know and love," PGA Tour Commissioner Jay Monahan said in a joint news release.

The announcement of the merger includes an agreement to end all pending litigation between the participating parties.

Additionally, the Public Investment Fund will make a capital investment into the new entity to facilitate its growth and success.

"Today is a very exciting day for this special game and the people it touches around the world," said PIF Governor Yasir Al-Rumayyan.

"We are proud to partner with the PGA Tour to leverage PIF's unparalleled success and track record of unlocking value and bringing innovation and global best practices to business and sectors worldwide."

The rival LIV Golf circuit launched in 2022 and lured some big-name players away from the rival circuits with staggering sums of money in 54-hole events that feature no cuts and paydays for every golfer.

Among the more popular players who made the move to LIV Golf are Hall of Fame golfer Phil Mickelson, former world number one Dustin Johnson, reigning PGA Championship winner Brooks Koepka and 2022 British Open winner Cameron Smith.

(Reporting by Frank Pingue in Toronto; Editing by Alex Richardson and Christian Radnedge)