A City worker who was sacked whilst undergoing treatment for cancer has agreed agreed a six figure out of court settlement with Stoke-on-Trent City council after suing for libel and sex discrimination.

Jeanette McGarry, who worked for the council between June 2009 and April 2010, brought two lawsuits against the authority as she claimed the council discriminated against her on gender and disability grounds when it dismissed her as director of housing environmental and neighbourhood services in 2010.She received her dismissal letter on the day she returned from hospital surgery.

Mrs McGarry, above, was paid £121,333 after leaving East Staffordshire Borough Council “by mutual consent” in December 2008. She had been suspended for alleged misconduct, but reasons for her departure from the post remain secret.

Louis Charalambous, a partner in the London-based law firm which represented Ms McGarry confirmed that a settlement has been reached, but said it does not intend to disclose the sum.

Richard Penn, a consultant with union the Association of Local Authority Chief Executives (ALACE), said: “We have always challenged the suggestion that she was properly dismissed. If there were issues with her performance they should have been dealt with properly as per her entitlement as an employee.

“They said her probationary period had been extended, but she had not been told about it. We will now support her in whatever way she needs. She is looking to move on with her life and draw a line underneath Stoke.”