Walsall Council has agreed a settlement totalling £584,000 with a former council whistleblower.
Peter Francis, a former head of programme management, took the council to an employment tribunal claiming he had been unfairly dismissed after querying some financial transactions, including the distribution of grants.
He said highlighting the claims provoked a "hostile response" from colleagues and caused him to suffer stress.
Walsall Council agreed to pay the sum to Francis in settlement of a claim under the Disability Discrimination Act.
The local authority has also agreed to pay Francis's tax liability and legal costs - bringing the total settlement to £584,000.
Walsall Council leader Tom Ansell said: “While the council apologised to Mr Francis for the discrimination he suffered, it is our responsibility to secure a financial settlement which reduces the burden on the council tax payers of Walsall.”