Casey councillor Sam Aziz received a significant damages payment to settle a defamation case against a local resident just months before Victoria's corruption watchdog accused him of pocketing $900,000 from a property developer.

The Age can reveal Casey resident Martin Angenent paid about $80,000 to Cr Aziz and his lawyers in May, after criticising the former mayor's cosy relationship with a developer on social media in 2017.

But after a series of stunning claims about Cr Aziz' alleged misconduct during recent hearings by the Independent Broad-based Anti-corruption Commission, Mr Angenent is now considering launching fresh legal action against Cr Aziz and the City of Casey Council.

Cr Sam Aziz is former mayor of the City of Casey. Credit:James Taylor

Mr Angenent refused to comment on the case, but his lawyer Mark Stanarevic confirmed he was assessing a legal challenge to the settlement.