The Irish Blood Transfusion Service (IBTS) today reached a settlement in the dispute with its chief executive officer Mr Martin Hynes.
The High Court was told in a statement the dispute had been settled to the satisfaction of both parties.
Under the agreement Mr Hynes will step down on October 31st and will receive a "suitable payment" recognising the value of his service with IBTS. The amount of the settlement is not known, but is believed to be in the region of €300,000. The IBTS will also pay Mr Hynes's legal costs.
The IBTS said Mr Hynes will take annual leave until October 31st. Mr Andy Kelly is to return from annual leave to take up the position of acting chief executive officer from tomorrow until the end of October.
Outside the court Mr Hynes said he was pleased with the settlement. He said he believed the Hepatitis C inquiry would vindicate his name, but said he did not want pre-judge its outcome.
Mr Hynes said IBTS was now of a very high standard. Calling on the public to continue to support the service, he said: "I am was proud of being part of the team that turned it [the service] around over the last four years."
Mr Hynes was suspended by the IBTS board after his decision on June 6th requiring the regional director, Dr Joan Power, to take administrative leave.
On June 12th the board overturned Mr Hynes's decision on Dr Power's leave. Mr Hynes himself was suspended with effect from June 23rd.
On June 24th Mr Hynes secured an interim High Court order revoking his suspension and restraining the board from appointing any other person to his position pending a full hearing.
After the statement was read out court today, Mr Justice Smyth said he was happy the "fractious" action was over, adding "the broken lives in the background were more important".