A prisoner who was allegedly tortured and had a disturbing ISIS slogan branded onto his forehead by his radical Islamic cellmate will walk away with $400,000 in compensation.

Michael Sean O’Keefe sued the state after the alleged razorblade torture left him fighting for his life when he was paired with then 18-year-old Bourhan Hraichie at Kempsey Prison in NSW.

He suffered a broken sternum, was put into an induced coma and was left with deep scars following the alleged prison cell torment, the Daily Telegraph reports.

Scroll down for video

Bourhan Hraichie, 18, (pictured) who allegedly carved an ISIS sign into his cellmate's head is now being reporteldy investigated over threats to behead staff

Michael O'Keefe, 40, was attacked after he and Hraichie were placed in the same cell at Kempsey jail (pictured) in New South Wales despite having different security classifications (stock image)

Correctional Services settled the matter outside court and Mr O'Keefe - who was a former Army Reservist -was awarded between $400,000 and $500,000, a criminal lawyer told the publication.

His alleged attacker Hriachie charged with four counts of causing grievous bodily harm with intent to murder and will face court on Monday.

Mr O’Keefe was released from Kempsey Prison after he spent several months behind bars for domestic violence offences.

Hriachie was moved to Goulborn Supermax prison following the alleged torture.

He was accused of using a razor blade to etch 'E4E' — meaning 'eye for an eye' into Mr O'Keefe's forehead.

The Sunday Telegraph reported that a threatening letter to staff was written in the name of ISIS.

The teenage jihadi was charged with causing grievous bodily in April after allegedly using a razor blade to etch 'E4E' — meaning 'eye for an eye' into O'Keefe's forehead (stock image)

A Corrections Department spokeswoman said the department would not comment on the threatening letter 'as the matter is the subject of a police investigation' (stock image)

Hraichie had been reprimanded twice recently for writing ISIS propaganda on his prison cell walls.

Mr O'Keefe was attacked after he and Hraichie were placed in the same cell at Kempsey jail in New South Wales despite having different security classifications.

On top of the gruesome carving, it is alleged Hraichie also poured boiling water onto a towel he then placed on the 40-year-old former Toowoomba-based digger's face

Senior prison sources claim the bloody assault went on for more than 20 minutes before Mr O'Keefe was rushed to Port Macquarie hospital.

The teen ISIS supporter was transferred to Goulburn Supermax Jail (pictured) after allegedly assaulting Mr O'Keefe on April 7

He also suffered serious burns to his face and injuries to his head.

Following the attack, the general manager of the prison, Greg Steele, was stood down.

The teen ISIS supporter has been a known supporter of the terrorist group for several months and had been previously caught sending graphic images of beheadings to other IS extremists housed in Goulburn.