Pretoria — Former National Director of Public Prosecutions Vusi Pikoli has reached an out of court settlement with the state.

"The two parties acknowledge that a breakdown took place in their relationship, and now wish to restore their relationship to one characterised by mutual trust and respect," the Presidency said in a statement on Saturday.

The terms of the agreement include amongst others that Pikoli withdraw the application before court.

"Mr Pikoli shall be paid an amount of R7.5-million in full and final settlement," the agreement stated.

The Presidency said that government had welcomed the "successful" conclusion of this matter.

Pikoli was due to appear in the North Gauteng High court on Monday morning to challenge the decision to remove him from office. He was suspended in September 2007.

Pikoli took government to court over his non-reinstatement after being cleared by the Ginwala Commission.