However, the two never paid the demanded sum and so were again deposed in June 1193 by a decision of the Imperial Diet at Worms, which appointed their cousin, the Prague bishop Henry Bretislaus, as duke.

The brothers then very nearly came to war, but, their armies encamped facing each other, the two met and negotiated a solution whereby Ottokar took the Bohemian throne–though without imperial approval–and compensated Vladislaus with the hereditary margravial title of near-autonomous Moravia.

By his repudiation of the throne, Vladislaus helped to bring an end to the destructive dynastic wars of the Přemyslids, which had lasted for over twenty-five years from the death of his father.

Daniel played a vital role in the reconciliation between Vladislaus and Ottokar; despite several protests to the Roman Curia, he held the see until 1214 without receiving imperial nomination.

He died without issue at his court in Znojmo, whereafter the Moravian margraviate fell back to King Ottokar I, who enfeoffed it to his younger son Vladislaus II.