The city fired officer Brad Stavig last summer, accusing him of taking his work computer home and using it for online dating, visiting pornographic Web site and sending personal e-mail.
Stavig filed a grievance asking for re-instatement and back pay from the time of his termination nearly 10 months ago. The agreement, announced Monday by the city, drops the grievance and releases the city from any further claims.
The city news release, sent over Mayor Dean Maxwell's signature, said that "the parties have agreed not to discuss the matter further and request that the public respect this agreement and their desire to move beyond it."
The release also said Michael D. Kinkley of Spokane, representing the police union, said "The Guild is pleased the parties were able to reach an amicable settlement without resorting to further litigation."
Stavig was hired as a dispatcher in 1992 and was hired as a patrol officer in 2002.