A doctor wrongly accused of terrorism has struck a ''substantial'' compensation deal with the federal government.

The deal, confirmed by Dr Mohamed Haneef in Brisbane this afternoon, will end all court action over the matter, including against former Immigration Minister Kevin Andrews, who cancelled the Indian-born doctor's visa in 2007.

Dr Mohamed Haneef, pictured in Brisbane on Tuesday, will be awarded ''substantial'' compensation from the federal government over his wrongful arrest in 2007. Credit:Courtney Trenwith

Dr Haneef's lawyer Rod Hodgson said the compensation - agreed to during mediation talks with the federal government - was "substantial" but would not reveal the figure.

Prior to the mediation talks, chaired by former judge Tony Fitzgerald QC, lawyers had said compensation could be in the order of $1 million.



Cornelia Rau, who was wrongfully held in immigration detention for nine months during 2004-05, was reportedly paid $2.6 million in 2008.