Dr Awotona joined South Tyneside District Hospital in 1995
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A hospital consultant has been told she will be allowed to return to work after a five-year legal battle.
Consultant obstetrician Feyi Awotona was sacked from South Tyneside District Hospital in 1998.
But even though an industrial tribunal ruled her sacking was unfair, the South Tyneside Health Care Trust (STHCT) refused to take her back.
But trust bosses have now decided to accept the tribunal's decision.
It now faces a legal bill, estimated to be about £1m, and will also have to pay compensation to Dr Awotona.
Dr Awotona, from Gosforth, Newcastle, was sacked in December 1998 for "gross personal misconduct".
She claimed she was sacked after she raised concerns about levels of care at South Tyneside District Hospital in 1998.
'Change of mind'
The industrial tribunal found she had been dismissed because she had been collecting evidence against her bosses for a racial discrimination claim.
A statement released by Dr Awotona's solicitors, said: "Dr Awotona remains committed to her stated wish of returning to her job at South Tyneside and is looking forward to working again with her colleagues at STHCT.
"This change of mind by STHCT fully vindicates Dr Awotona.
"As recommended by the tribunal, STHCT will need to work with those members of staff guilty of racial victimisation so as to avoid further racial discrimination.
"Management will need to take proper and reasonable steps to ensure that a situation of this sort does not occur again."
A spokeswoman for STHCT said the trust would assist Dr Awotona to return "smoothly" to her role and would do what was necessary to help rebuild her career.
It is expected she will return to work early in the new year.