The ABC's former managing director, Michelle Guthrie, will receive an out-of-court settlement worth $730,000 in return for ending her legal action.

Key points: The ABC board sacked Michelle Guthrie halfway through her five-year term

The ABC board sacked Michelle Guthrie halfway through her five-year term The broadcaster will pay $730,000 to settle legal action Ms Guthrie launched

The broadcaster will pay $730,000 to settle legal action Ms Guthrie launched Ms Guthrie was also paid more than one year's salary, separate to the settlement

Ms Guthrie was sacked halfway through her term in September last year and pursued the public broadcaster for wrongful dismissal in the Federal Court.

The matter was resolved last Friday and acting ABC managing director David Anderson revealed the $730,000 settlement at a Senate estimates hearing on Wednesday.

"The parties did start a long way apart," Mr Anderson told the committee.

"As you know, the adverse action claim was against reinstatement or, I believe, payment of the remaining term of Ms Guthrie, with two-and-a-half years left to run on her contract.

"There was toing and froing to arrive at the number I'm about to give you.

"The gross amount of that settlement claim is $730,000."

Ms Guthrie was also paid more than one year's salary when her contract was terminated, separate to the out-of-court settlement, taking the total pay out to $1.64 million.

Ms Guthrie claimed the board had no reason to trigger a termination clause in her contract.

At the time of Ms Guthrie's departure, then ABC chairman Justin Milne said the board had decided it was not in the best interests of the organisation for her to continue to lead it.

Just days later, Mr Milne resigned after allegations he bowed to political interference in relation to the performance and employment of ABC journalists.

Mr Milne has repeatedly denied he ever attempted to interfere with the ABC's editorial independence.

Media veteran Ita Buttrose was announced as Mr Milne's replacement as ABC chair on Thursday.

Ms Guthrie, when approached by the ABC, declined to comment.