Resources magnate Clive Palmer has settled the majority of the $200 million lawsuit over the collapse of Queensland Nickel, including striking a deal with government-funded liquidators chasing $66 million in taxpayer funds used to cover sacked worker entitlements.

Key points: Special purpose liquidator Stephen Parbery says the settlement is in the "best interests" of creditors

Special purpose liquidator Stephen Parbery says the settlement is in the "best interests" of creditors In a statement, Mr Palmer says all payments to creditors will be made in full, as well as reimbursing all money paid under the Government's Fair Entitlements Guarantee scheme

In a statement, Mr Palmer says all payments to creditors will be made in full, as well as reimbursing all money paid under the Government's Fair Entitlements Guarantee scheme The trial will continue with a small number of disputed creditor claims remaining to be dealt with by the general purpose liquidators against Mr Palmer's flagship company Mineralogy

Mr Palmer was absent from the Supreme Court on Monday when the barristers involved in the legal battle revealed a settlement had been reached between the billionaire and special purpose liquidators.

The magnate later released a statement saying he had been "vindicated" and "the witch hunt against him was finally over".

Outside court, special purpose liquidator (SPL) Stephen Parbery said the settlement was in the "best interests" of creditors and would cover the $66 million in outstanding employee entitlements.

He said it provided for the "full repayment of the Commonwealth's Fair Entitlements Guarantee (FEG) debt, all other outstanding employee entitlements, and a full recovery of the majority of unsecured creditors".

The trial will continue with a small number of disputed creditor claims remaining to be dealt with by the general purpose liquidators against Mr Palmer's flagship company Mineralogy.

It comes just days after it emerged Mr Palmer had reached an out-of-court settlement over debts with Aurizon, the biggest creditor from Queensland Nickel's demise in early 2016.

"The complexities of the legal issues facing Mr Palmer and his co-defendants, and the resistance from these parties to the recovery actions, caused lengthy delays to the commencement of the trial," Mr Parbery said.

"With the full weight of the evidence being laid before the defendants ahead of the trial, settlement negotiations were initiated as the trial commenced."

'Nothing more than a witch hunt,' Palmer says

In a statement, Mr Palmer said all payments to creditors would be made in full, as well as reimbursing all money paid under the Government's FEG scheme.

"Today's settlement confirms the actions against me were nothing more than a witch hunt designed to smear my good reputation,'' Mr Palmer said.

Under the terms of the Settlement Agreement, the SPL withdrew all claims made against Mr Palmer and all the defendants associated with Mr Palmer.

"I had no option but to fight this battle to clear my name, and to demonstrate to all Australians that serious action is needed to reform the insolvency industry, which just destroys and does not build enterprise and jobs," Mr Palmer said.

Mr Palmer said under the terms of the agreement, neither he, nor any of his companies, would pay the tens of millions of dollars in legal fees and fees paid to and by the SPL.

He also called upon Queensland Premier Annastacia Palaszczuk to take urgent action to allow the nickel refinery access to its berth in Townsville, so that steps could be taken to commence operations and restore the North Queensland economy.

Townsville Mayor Jenny Hill said she welcomed the news of the settlement.

"It is good news to hear that a settlement has been reached that will allow the full outstanding employee entitlements to be paid," she said.

"There are still a number of matters that are still being dealt with by the court — I'm hopeful that all creditors will now receive their full entitlements."

Cr Hill said it had "been a difficult time for many of these businesses and former employees".

"Many people are still owed money as a result of the collapse of the refinery," she said.

"I'm sure the full settlement of these claims would be welcomed."