A policewoman who brought a race and sex discrimination claim after being investigated over allegations of racism has agreed an out-of-court settlement.
Julia Pendry had denied making a racist remark
Chief Inspector Julia Pendry, 40, took Scotland Yard to an employment tribunal after a five-month inquiry over claims she made a racist remark to officers.
Although she was cleared she alleged she was denied promotion as a result of the incident.
The Metropolitan Police has always denied the allegations.
Her case was due to be heard at an employment tribunal in Watford on Thursday but following negotiations the two parties agreed a settlement.
Sikh community support
In a joint statement they said: "Ch Insp Pendry remains a loyal and trusted senior officer of the Metropolitan Police and her professional contribution to the service is acknowledged."
The case began in November 2003 when she reportedly told officers not to eat at street stalls during the Sikh festival of Guru Nanak.
Outside the tribunal building Ms Pendry, a uniformed officer with 22 years' experience, embraced supporters from the Sikh community.
She said: "I would like to thank the people of the Sikh community who have been with me and I would like to thank the Police Constables Board of the Police Federation who have supported me throughout this time."
Ms Pendry is currently chief inspector of operations in the London borough of Brent, earning around £50,000-a-year.