The ABC has reached a confidential settlement with former managing director Michelle Guthrie over her adverse action claim in court marking the end of a turbulent chapter for the public broadcaster.

Ms Guthrie's legal team filed an adverse action claim in the Federal Court after she was sacked from her $900,000-a-year role as managing director of the ABC last year. She was paid an $800,000 termination fee when she was fired halfway through her five-year contract.

Former ABC chairman Justin Milne and then managing director Michelle Guthrie. Credit:AAP

The ex-Google executive then took the taxpayer-funded broadcaster to court over claims her dismissal was in retaliation for raising complaints against former chairman Justin Milne. Mr Milne resigned shortly after Ms Guthrie left the broadcaster amid allegations he encouraged her to sack journalists the government didn't like.

Ms Guthrie's lawsuit against the ABC specifically named Mr Milne and directors Donny Walford, Joseph Gersh and Vanessa Guthrie. The ABC and its directors have consistently denied her sacking was retaliatory and said it was entirely due to her performance in the job and the board losing confidence in her.