The terms of the settlement are confidential, the ABC said in a statement Friday. The agreement comes three weeks before the parties were due to enter court-ordered mediation.

“The ABC and its former Managing Director, Michelle Guthrie, are pleased to announce a resolution to their Federal Court litigation,” the broadcaster said.

“The details of the resolution will remain confidential. No further public statement will be made regarding the resolution by the ABC or Ms Guthrie.”

Guthrie, the first female managing director of the ABC, lodged a complaint with the FWC in late September last year, but launched Federal Court proceedings in December, after a failed conciliation conference before the workplace umpire.

She sued for loss and damages under both the Fair Work Act and the Australian Broadcasting Corporation Act, including payment for the balance of her five year contract with the broadcaster. Guthrie was appointed to the top position in May 2016 and was terminated on September 24 last year, half way through the contract. The suit also named as respondents forer chairman Justin Milne and ABC board members Donny Walford, Vanessa Guthrie and Joseph Gersh.

Guthrie said in a statement at the time she was “devastated” by the board’s decision and was considering her legal options.

“While my contract permits the board to terminate my appointment without cause and with immediate effect, I believe there is no justification for the board to trigger that termination clause,” she said.

ABC chairman Justin Milne resigned his position as chairman days after Guthrie was shown the door, following accusations reported in Fairfax and News Limited that he tried to have two journalists sacked.

The broadcaster announced last week it had appointed Ita Buttrose AO OBE to replace Milne as the corporation’s new chair.

Acting ABC Managing Director David Anderson said Ms Buttrose would provide valuable strategic leadership at an important time for the national public broadcaster.

“I join with all ABC employees in welcoming Ita Buttrose to this important role,” said David Anderson, who has been ABC’s acting managing director since Guthrie’s dismissal. “Ms Buttrose is an eminent Australian with vast experience as an editor and media executive. Her leadership of the ABC, a highly valued and trusted cultural institution, is welcomed.”

Guthrie was represented by Johnson Winter & Slattery. The ABC was represented by MinterEllison. Ashurst represented Milne, Walford, Gersh and Vanessa Guthrie.

The case is Michelle Guthrie v The Australian Broadcasting Corporation & Ors.