Abertay University has said it can now confirm the retirement of its principal Prof Bernard King.
An announcement earlier this month was disputed by Prof King who said he did not accept he was stepping down.
The 65-year-old has been suspended since January and had alleged discrimination on grounds of age.
But the university said that all legal claims had now been withdrawn and the issues between the two parties had been "resolved".
Prof King declined to comment.
In a statement, the university praised Prof King's "unique contribution" to the institution's success over the past 19 years of his stewardship, turning it into a "globally recognised centre of excellence".
The statement said: "Prof King leaves behind a university in good shape, attracting record numbers of student applications and well prepared for the inevitable challenges ahead.
"The university and Prof King are united in a joint desire to move forward in the interests of Abertay's students and staff and to build on past successes, to the benefit of the city of Dundee and the wider community.
"The university wishes Prof King, who retires with the title of Emeritus Professor, all the best in his future endeavours."
A spokeswoman said the university's governing body would be naming the library after the professor in recognition of his role.
The university first announced Prof King's retirement in an email to all staff - apparently sent in error - at the beginning of July.
But two days later, the professor denied that he was stepping down and said he did not accept the announcement.
The university has been in turmoil since Prof King's suspension in January.
An email sent by senior Abertay academic Prof Phillipe Baveye and seen by the BBC accused the university court of being "amateurish, inept, incompetent and irresponsible" in the row with its principal.
The claims were vigorously denied by the university.
Article from the BBC