Cricklade College has settled a claim for unfair dismissal by its former principal, Richard Evans, who was sacked for mismanagement and for "bringing the college into disrepute".
An internal inquiry and an inquiry for the Department for Education and Employment by Sir Pat Lowry both found that Mr Evans had mismanaged a European Social Fund contract.
Lecturers' union Natfhe said it was "furious" that a sum of money had been paid to Mr Evans and that the college had refused to reveal details.