Swansea Council's chief executive, who was suspended while an investigation was carried out into a planning issue surrounding his home, has resigned.
Tim Thorogood had been off work since 20 December 2005
Tim Thorogood was suspended from his £120,000-a-year post in January.
He had been off work after questions were raised in December over work done to his house in Rhossili, Gower.
The council announced on Thursday night that he has quit with immediate effect. He had acknowledged minor planning breaches, but denied misconduct.
The investigation had focused on an application made for a detached garage and workshop at his property.
Mr Thorogood, who took up the post three years ago, was given approval for the garage retrospectively.
Swansea council had said there "was a case" for Mr Thorogood to answer, and that an independent investigator would be appointed to oversee an investigation.
However a spokesman for the council said disciplinary action against Mr Thorogood had now been dropped.
After he was suspended on 13 January, Mr Thorogood's representative said he was disappointed by the decision.
Mr Thorogood's home on Gower was at the centre of the inquiry
He acknowledged some minor breaches of planning permission, which he said had now been rectified.
Swansea's Liberal Democrat council leader, Chris Holley, said Mr Thorogood had "made a huge contribution to Swansea".
"He has been an inspiration and driving force behind many improvements to the council. He's laid the groundwork for the council to become a top performing organisation.
"On behalf of all the members of the council, I wish him every success in the future."
Speaking about the financial settlement, he added Mr Thorogood had had what he was legally entitled to, and a severance payment. The council had taken advice from barristers and auditors in making the arrangements.
Mr Holley said the council was "acting swiftly and prudently" to deal with the situation.
However Swansea council's opposition leader, Labour councillor David Phillips, raised concerns about the financial arrangements following Mr Thorogood's resignation.
"The resignation was probably inevitable given the circumstances and the amount of evidence already in the public domain," he told BBC Wales.