Sharon Shoesmith, who was formerly in charge of child protection, is reportedly set to receive a six-figure unfair dismissal payout over her sacking in the wake of the Baby P scandal.
The taxpayer-funded payout, which was made public knowledge last night, comes are Ms Shoesmith won a 2011 ruling that she had been unfairly dismissed from her job after that damning report into the death of Peter Connelly.
A settlement up to £600,000 has been agreed, although there is a chance that the ex-social worker could receive a lower, or higher, sum.
As many readers may remember, Shadow Chancellor Ed Balls, while Education Secretary, removed Ms Shoesmith from her post as Haringey Council's director of child services after a report from Ofsted exposed how her department had failed to protect 17-month-old Peter Connelly (better know to the public as Baby P).
The little boy died at the hands of his mother Tracey Connelly, her lover Steven Barker and their lodger Jason Owen; Peter suffered over 50 injuries, despite being on the at-risk register and receiving 60 visits from social workers, police and health professionals during the final months of his life.
Mr Balls, at the time, reported that there were several missed opportunities for officials to act and save the little boy's life, citing "catastrophic management failures" as the reason for Baby P's death.
"I judged on the basis of that independent report - and on the advice of departmental officials and lawyers - that the right and responsible course of action was for me to use my statutory powers to remove the Director of Children's Services from her position with immediate effect."
However, in May 2011, the Appeals Court concluded that Sharon Shoesmith had been unfairly sacked, as Mr Balls and Harringey Council didn't give her a chance to argue her side of the story.
Ms Shoesmith could receive up to £1 million in compensation, although experts have predicted a settlement of £600,000 is more likely. 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.
A Haringey Council spokeswoman said today: "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.
"The terms of the settlement are confidential. We are unable to comment further on this matter."
Earlier in October it was reported that Tracey Connelly was due to be released from prison on parole.
What do you think of the case - was Sharon Shoestring the victim of a modern-day witch hunt, or should she, as head of child protection, done more to protect Baby P? Let us know via the Comments Box below.