ESSENDON has apologised to Andrew Thorburn, saying the dispute with the club's short-lived chief executive is over and conceding his exit was poorly handled.
Thorburn chose to resign just one day after being appointed to the job at Essendon in October, due to his role as chair of a church with divisive views around abortion and homosexuality.
The former NAB boss vowed to take action against the Bombers for being placed in a position where he had to choose between the job at Essendon and his role at City on a Hill church.
But Essendon and Thorburn confirmed on Tuesday the matter would be going no further.
"A critical element of this resolution is to enable a wider community conversation on the importance of freedom of conscience, religion and belief and how to have respectful dialogue between people with different views and perspectives," the joint statement between Essendon and Thorburn read.
"All people should be respected and welcomed in workplaces and community organisations.
"No one should have to choose between their faith or sexuality, and their employment.
"The club acknowledges that the events of October should have been handled better and apologises for the impact it had on Mr Thorburn, his family and others."
Essendon said Thorburn, a long-time Bombers supporter, remains welcome at the club, and also confirmed it would make a donation to an ethics institute.
"The club reiterates that he is a person of integrity who treats others, whether at work or elsewhere, with dignity and respect," the statement read.
"He has a strong track record of leadership including with respect to diversity and inclusion of LGBTIQ and other minority groups."
In a post on Thorburn's LinkedIn page, the 57-year-old said he would step away from all "formal responsibilities" in February and take a year off.
"The last few months have been difficult, yet it has also given me hope and strength," Thorburn wrote.
"This has come from the many people who have reached out to me and provided love, prayers and support through these challenging times."