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The Melbourne Storm has ended its legal action against the National Rugby League over the club's salary cap penalties.

Following the sacking of the Storm's four independent directors last week, the club's new directors and chief executive Ron Gauci have decided against furthering the case.

"The board together with the new chief executive officer, Ron Gauci, and senior management, can now focus on working with the NRL to ensure the Storm fields a team next season that is under the salary cap," the club said in a statement.

The independent directors had been seeking a Victorian Supreme Court injunction restraining the NRL from stripping Melbourne of the 2007 and 2009 premierships and preventing them from earning points this season.

But NRL boss David Gallop welcomed the decision to end the legal action and added: "This case did not have merit and has only served to give false hope to Storm fans.

"The NRL moved quickly on April 22 because that's what the Storm, via its then chairman Dr Rob Moodie, chose to do.

"They brought forward the date for the meeting and their admissions provided a large proportion of the evidence that led to the penalties.

"If they had given any indication that they wished to follow our normal appeal process, that is what would have happened.

"Their announcements that they 'accept the ref's decision' and that they 'offered no excuses' were emphatic on the day and we relied on them.

"The penalties were the right ones for what had occurred. It's time for all of us to concentrate on the club's future."