Ajmal has threatened to burn his cricket gear if he was forced to close down his academy and vacate the varsity land on the campus by the Vice Chancellor of the university Iqrar Ahmed.
But with the media highlighting his plight the chief minister of Punjab Shahbaz Sharif stepped in today and a compromise was reached between the two warring parties.
"Everything is settled now and I am very happy. A proper MOU will be signed in a few days and there will be a management committee constituted to look after all financial affairs of the academy," Ajmal told reporters after meeting with the VC and DCO of Faisalabad.
The VC later said on Geo Super channel that they feared that there was financial mismanagement at the academy and Ajmal was using it for commercial gain which was against the agreement between the two parties.
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Ajmal was given land inside the university campus in 2012 to build and run his academy by the syndicate committee of the university.
But few months back the syndicate issued a notice sent to the Pakistan spinner informing him that due to security reasons they had cancelled the permission given to him to run the academy.
"Everything is settled now and I am allowed to continue running the academy. I told them I have no financial or commercial motives and just want to produce top class players from the talent in Faisalabad," Ajmal said.
The Pakistan spinner has been out of luck since his bowling action was declared illegal last year by the International Cricket Council.
Although he has modified his bowling action and will be going for the Bangladesh Premier League this month, the Pakistani selectors have ignored him since April.