Sharon Shoesmith, the former child protection boss who was sacked in the wake of the Baby P scandal, is set to receive a six-figure payout for unfair dismissal.
The little boy died at the hands of his mother, Tracey Connelly, and her boyfriend, Steven Barker, in 2007 despite being on Haringey's at risk register.
Ms Shoesmith won an unfair dismissal case in 2011 after she was removed from her £133,000-a-year job without compensation.
Ms Shoesmith has reportedly not worked since leaving Haringey Council, and her lawyers claimed she was the victim of a 'flagrant breach of natural justice' that was fuelled by a media witch hunt.
The Court of Appeal concluded in May 2011 that she had been unfairly sacked on the basis she had not been given a proper opportunity to defend her case before she was removed.
The Department for Education and Haringey sought permission to attempt to overturn the ruling in the Supreme Court, but judges rejected the applications, enabling Ms Shoesmith to launch a case for compensation.
The BBC's Newsnight programme says some of the money for her payout will come from central government funds, but most will come from Haringey council.
Baby Peter's mother Tracy Connelly was recently released from prison with a new identity.
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