BRITAIN'S top Asian police officer is to quit Scotland Yard on Thursday after finally agreeing a £300,000 compensation deal over his race claim against Commissioner Sir Ian Blair.

Final details of Tarique Ghaffur's deal were resolved today following weeks of negotiations. Mr Ghaffur, 53, is now expected to seek a consultancy role on security for the 2012 Olympics as well launching a charitable foundation for "vulnerable communities".

In a joint statement the Metropolitan Police Authority and Sir Ian announced that: "They recognise the hurt which he has felt over the past 18 months."

They also acknowledged Assistant Commissioner Mr Ghaffur's "important service" to the Met and his significant contribution to operational policing nationally during his 34-year career.

In return Mr Ghaffur has agreed to withdraw claims that Sir Ian or Deputy Assistant Commissioner Richard Bryan acted in a racist manner.

The agreement ends a hugely damaging confrontation between two of Britain's most senior police officers.

This summer Mr Ghaffur was effectively suspended after he held a TV press conference and accused his bosses, in particular Sir Ian, of being racist and side-lining him in favour of white officers. The allegation came after he was removed from his post in charge of Olympic security. The role went to a senior civil servant.

Privately both sides - senior Home Office officials and friends of Mr Ghaffur - had accused each other of dragging their feet over implementing security measures for the Olympics.

Mr Ghaffur claimed to have compiled a damning dossier of evidence of racism at the Met dating back several years. His allegations sparked the biggest police race row since the Macpherson report, which followed the murder of black teenager Stephen Lawrence.

It led to a boycott of ethnic minority recruitment by the Metropolitan Black Police Association and inquiries into alleged racism in the police were announced by both the Home Secretary Jacqui Smith and Mayor Boris Johnson.

Mr Ghaffur's decision to settle his claim rather than pursue it at an employment tribunal will be seen as a climbdown by some.

However, friends said that he had never had an issue with the Yard in general but only with the leadership.

Now that Sir Ian has resigned, his motivation for pursuing the claim had gone. A close friend of Mr Ghaffur said: "He still has very strong views about how he was treated but now that the leadership has changed there was little appetite to pursue this." He added that Mr Ghaffur was almost driven from the negotiating table in recent weeks, accusing the Met of repeatedly "moving the goal posts" as they requested a string of expensive legal meetings.

In the settlement the Met has agreed to pay a proportion of legal fees. In addition to his payout Mr Ghaffur will be entitled to a lump sum police pension of £522,000 and an index-linked income of £85,000 a year. The deal was pushed through to clear the decks before Deputy Commissioner Sir Paul Stephenson takes over the running of the Met on a temporary basis when Sir Ian steps down on 1 December.

Mr Ghaffur's race claim became embroiled in further controversy when it emerged that two close advisers were under investigation in connection with other matters. His solicitor, Shahrokh Mireskandari, of Dean & Dean, is being investigated by the Solicitors Regulation Authority and Commander Ali Dizaei is suspended pending three inquiries into alleged misconduct.

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