The BBC has decided not to appeal against the equal pay case involving the Newswatch presenter Samira Ahmed after she won an employment tribunal against the broadcaster, giving hope to other women seeking back pay from the national broadcaster.

Ahmed successfully claimed she was owed almost £700,000 in back pay because of the difference between her £440-an-episode rate and the £3,000 an episode Jeremy Vine received for hosting Points of View, a similar programme to Newswatch.

An employment tribunal unanimously concluded in January that the BBC had failed to provide convincing evidence that the pay gap was for reasons other than gender discrimination.

The BBC had argued, among other issues, that Vine deserved a higher pay packet as he was more famous and had a “glint in his eye”, but the tribunal said it did not provide sufficient evidence that this was the case.

The BBC initially objected to the ruling but has now declined to appeal against it, reaching an undisclosed financial settlement with Ahmed.

The presenter, who was supported by the National Union of Journalists, has not commented on the settlement, but after the tribunal verdict she said: “I love working for the BBC. No woman wants to have to take action against their own employer.”

In their verdict the tribunal judges said there were only “minor differences” in the work Ahmed and Vine did presenting the two comparable viewer feedback programmes.

They wrote: “Jeremy Vine read the script from the autocue. He read it in the tone in which it was written. If it told him to roll his eyes, he did. It did not require any particular skill or experience to do that.”

The decision not to appeal provides hope to the many other women still pursuing the BBC over historical equal pay cases, while the corporation could face a substantial legal bill as a result of its decision to fight the case.

Equal pay – which covers gender discrimination between individuals doing the same or equivalent work – is different to the wider societal issue of the gender pay gap.

A BBC spokesperson said: “Samira Ahmed and the BBC are pleased to have reached a settlement following the recent tribunal. Samira is a highly valued BBC presenter and now these matters have been concluded we all want to focus on the future. We look forward to continuing to work together to make great programmes for audiences. Neither the BBC, Samira or the NUJ will be commenting further on this case.”