Invercargill City Council (ICC) announced today (14 Feb) that a claim against them and Riskpool by former mayor Sir Tim Shadbolt has now been settled.

The claim related to Shadbolt seeking recovery of his legal expenses following a 2015 defamation claim brought by Councillor Karen Arnold.

The ICC and Riskpool have not accepted liability for these expenses, but have agreed to a resolution, according to the ICC statement.

Sir Tim is satisfied with this resolution and has agreed to discontinue his proceedings, it said.

ICC Mayor Nobby Clark said the council has incurred costs of $285,000 in these proceedings to date.

"It is likely Council would have faced further costs had this settlement not occurred."

"It was important for Council to draw a line under these proceedings and move forward," Clark said.