Oxford University scientist Sunetra Gupta has received an undisclosed sum of money, her legal costs and a full apology from Roy Anderson.
Professor Anderson admitted making a false allegation about Dr Gupta to colleagues. The row that followed led to Professor Anderson resigning as a governor of the Wellcome Trust and director of the charity's Centre for the Epidemiology of Infectious Disease.
Dr Gupta's solicitor May Macpherson said her client was satisfied that her professional and personal reputation had been restored.
Dr Gupta is donating the payment to Save the Children.