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.