The FMCG giant pulled its ads from IDS channels, including the likes of Living, Bravo, Trouble and the UKTV stable of channels, at the beginning of July.
The long-running dispute is thought to have cost the sales house around £1.5m in lost advertising revenue.
IDS was faced with a possible overtrading situation during the summer, having forecast a rise of up to 15% in impacts for 2006, but only increased its impacts up to July by less than 9%.
The two parties have now reached agreement on a new annual deal which will run until next November and IDS is thought to have emerged from its overtrading difficulties with a stronger performance in the second half of the year. P&G products returned to advertising within Flextech programming this month.
Bernard Balderston, associate director, media, for P&G, whose brands include Pringles, Ariel, Fairy Liquid, Olay and Max Factor, refused to discuss the details of negotiations, but he said: "I can confirm we are back advertising on IDS channels."
Martin Plant, sales director of IDS, said: "We are delighted that P&G are gracing our screens again and have been since the beginning of November."
IDS, which is expected to be rebranded Virgin Media Sales next year following the merger of NTL and Virgin, is expected to increase its impacts by double figures for the year.
The sales house is at the centre of speculation about the future of the advertising market because of the proposed £5bn merger between Flextech's new parent, NTL, and ITV, which would create a merged ad market share of more than 50%.