CANBERRA, AAP – Former Australia Post boss Christine Holgate will receive a $1 million settlement for losing her job under a deal struck more than nine months after the acrimonious split.

Ms Holgate left the organisation last year following a scandal over four luxury watches worth $20,000 being gifted to executives.

Australia Post has also agreed to pay $100,000 of the former chief executive officer’s legal costs.

In a joint statement, both parties revealed on Wednesday that $1 million would be given to Ms Holgate as a taxable employment termination payment.

“To finalise the matter so that both parties can move on, Ms Holgate has released Australia Post from all legal claims and Australia Post is making the payment without any admission of liability.”

Australia Post acknowledged it lost an effective chief executive following the events of October 22 when a furore erupted over the Cartier watches when the gifts were revealed in parliament.

“Australia Post regrets the difficult circumstances surrounding Ms Holgate’s departure from her role as CEO,” the statement said.