The chief executive of Special EU Programmes Body, Mr John McKinney, will resign from his position just days after his reinstatement.
Mr McKinney was suspended from duty because he was the subject of a police investigation relating to an issue arising from his employment with Omagh District Council.
Mr McKinney's contract was suspended on May 21 stpending a PSNI investigation into the whereabouts of money provided for in a loan to the Fintona Regeneration Initiative.
The decision on the agreed resolution of the position of the chief executive of the Special EU Programmes Body was jointly taken by Mr Ian Pearson MP, NIO Minister with responsibility for Finance and Personnel, and Mr Charlie McCreevy TD, Minister for Finance.
They agreed to lift Mr McKinney's suspension from duty as chief executive of the Special EU Programmes Body (SEUPB) with effect from noon on Friday, 5th December.
Mr McKinney announced his retirement effective from Wednesday December 10 th.
It has been agreed between the British and Irish authorities and Mr McKinney that it would avoid "continued uncertainty" over the CEO post for the SEUPB if the organization and Mr McKinney were to go their separate ways.
The Ministers said they appreciated the role Mr McKinney played in establishing the Special EU Programmes Body, and helping it to build its important and unique role in the new North-South arrangements brought into being under the Agreement.
"I am very pleased that I have been restored to my position as Chief Executive of the Special EU Programmes Body before my agreed departure. I reiterate my belief that I acted at all times in good faith and with integrity in the matter under investigation by PSNI," Mr McKinney said.
"I greatly welcome the fact that an amicable way forward has now been agreed, and that I can move on with my good name intact".
The police investigation concerning the loan to the Fintona Regeneration Initiative is ongoing.