Former Cleveland Police Chief Constable Sean Price says he has settled a legal case in which the Police Commissioner was trying to recover £500,000 from him.
Mr Price was the first police chief to be sacked in 35 years when Cleveland Police dismissed him in October 2012 for gross misconduct.
The force's Police and Crime Commissioner Barry Coppinger was suing Mr Price for payments the force said he should not have received, as part of a "golden handcuffs" deal over several years to keep him in post.
A civil claim expected to last two weeks was due to take place in March. But tonight Mr Price issued a statement which said the case had cost him several thousand pounds already and the public a great deal more.
"The only people benefiting have been lawyers", he said. "I made the decision that the best course of action was to settle now to prevent the costs escalating further".
It's reported that Mr Price has agreed to pay back a much smaller sum of money than the £500,000 under dispute. Neither the Police and Crime Commissioner nor Cleveland Police have yet made a comment.
The former chief constable of Cleveland Police, Sean Price, who was sacked for gross misconduct said he will not face criminal charges. He had been under investigation as part of the Operation Sacristy inquiry into alleged corruption within the force.
Nicholas Long, Commissioner of the Independent Police Complaints Commission, said Sean Price almost got away with deceiving their investigation.
He told reporters that Mr Price had lied and put pressure on a member of staff to lie on his behalf.
Mr Long said the former Chief Constable used his position to order people to do as he wished and said his standards fell far below those expected of someone in his position.
The chair of Cleveland Police Authority says Sean Price let himself down.
Stuart Drummond told a press conference that the public needs to have complete trust in the police service at every level.