Former child protection boss Sharon Shoesmith is reportedly to receive a six-figure unfair dismissal payout over her Baby P scandal sacking.
A settlement which could reach up to £600,000 has been agreed with Haringey Council, although it is thought Ms Shoesmith may receive a lower sum.
Ms Shoesmith won a 2011 ruling that she had been unfairly sacked from her £133,000 a year job following a damning report into the death of Peter Connelly.
She had been removed from her post by then Education Secretary Ed Balls and then fired without compensation after regulator Ofsted found Haringey had failed to protect 17-month-old Peter, who died in 2007 following months of abuse.
Ms Shoesmith has reportedly not worked since leaving Haringey Council.
Her lawyers argued that she was the victim of "a flagrant breach of natural justice" fuelled by a media witch-hunt.
Baby Peter suffered some 50 injuries despite being on 'at risk' registerIn May 2011, the Appeal Court concluded she was unfairly sacked because then Education Secretary Ed Balls and Haringey did not give her a proper chance to put her case before her removal.
The Department for Education and Haringey sought permission to attempt to overturn the ruling in the Supreme Court, but judges rejected the applications, clearing the way for Ms Shoesmith to receive compensation, which some experts predicted could be in the region of £1m.
Some of the cash for her settlement will come from central government funds, but the council will have to foot most of the bill, according to BBC Newsnight.
Mr Balls said at the time at the time of the Appeal Court ruling that he was "surprised and concerned" by the decision, which he warned would make it "difficult for ministers to act swiftly" when children are at risk.
Peter died in Tottenham, north London, on August 3 2007 at the hands of his mother Tracey Connelly, her lover Steven Barker and their lodger Jason Owen.
Peter's ordeal at the hands of his mother and Steven Barker shocked the UKHe had suffered more than 50 injuries despite being on the at-risk register and receiving 60 visits from social workers, police and health professionals over the final eight months of his life.
A series of reviews identified missed opportunities when officials could have saved his life if they had acted properly on the warning signs in front of them.
Ms Shoesmith had been due in court later this week, seeking a declaration that she remained employed by Haringey Council.
That action has now been dropped and the settlement reached between the two parties is understood to be a final one.
The council said the terms of the settlement were confidential.
A spokesman said: "Following the decision of the Court of Appeal in favour of Ms Shoesmith, and the Court's direction that the parties seek to resolve the issue of compensation, the London Borough of Haringey and Ms Shoesmith have reached a settlement in this case."
Earlier in October it was reported that Connelly was due to be released from prison on parole.
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