NEW YORK - Yahoo Inc has resolved a dispute with partner Alibaba Group over the Chinese company's transfer of its prized online payments unit to its Chief Executive Officer Jack Ma, two sources close to the matter said.

Yahoo's feud with Alibaba, 43-percent-owned by the US company, over the Chinese company abruptly transferring Alipay, has knocked Yahoo's shares by about 10 percent since early May.

The two companies reached an agreement before Yahoo's analyst meeting last Wednesday, one of the sources said. But the deal requires the consent of Softbank Corp founder Masayoshi Son, an Alibaba board member, who has been reluctant to come to the negotiating table, the sources said.