The ex-head of children’s services at the centre of the Baby P case is appealing against her sacking.
The report claimed her department’s shortcomings “led to a fundamental loss of trust and confidence” in her ability.
A Haringey Council spokesman said that Shoesmith was entitled to appeal against the decision.
It is believed that Shoesmith’s case hinges on whether the council followed correct disciplinary procedures, meaning she could be in line to receive anywhere between £30,000 and £63,000.
But Robert Gorrie, leader of Haringey’s Liberal Democrat opposition, said local residents would be “rightly outraged” if the council agreed to a large pay-off.
“We have said from the outset that those responsible for this tragedy should be held to account and that there should be no rewards for failure,” he added.
Two other senior Haringey officers remain suspended while an internal investigation is carried out.