The High Court has been told that Kenny Jacobs and daa have reached an agreement to settle their dispute, under which he will "voluntarily step down" from his role as chief executive.
A legal action being taken by Mr Jacobs against his employer, aimed at allowing him to return to work, was scheduled to be heard today and tomorrow.
When the case was called, Padraic Lyons SC, for Mr Jacobs, told the court that there had been "a very recent development".
A short time later, Mairead McKenna SC, for daa, informed the court that the two sides had resolved their dispute.
Ms McKenna said she was "pleased to confirm they had resolved the dispute on terms that are mutually agreeable, pursuant to which Mr Jacobs will voluntarily step down as chief executive".
She added that the board of daa and Mr Jacobs "acknowledge the significant contribution made by the entire management team and staff to the operational and commercial success of daa and recognise the positive impact the daa has on the Irish economy".
Ms McKenna said the matter has been "resolved in full" and she said the proceedings could be struck out.
Mr Lyons asked for an order for the plaintiff's costs to be adjudicated.
Ms Justice Marguerite Bolger granted the order and said she would strike out the entire proceedings.
The judge offered her congratulations to both parties and their legal teams, in what she described as "clearly a very complex matter".
Mr Jacobs initiated the legal proceeding after he was suspended from his role as CEO of the operator of Dublin Airport and Cork Airport in December, pending a new investigation into 20 allegations made against him.
He was seeking an order restraining a disciplinary investigation from proceeding and an order lifting his suspension from his position by the board of directors of daa.
Mr Jacobs was previously cleared of two allegations by an inquiry headed by Mark Connaughton SC.
In an affidavit submitted to the High Court, he claimed a further 20 allegations were being lined up against him in order to secure a particularly unfavourable decision against him in the proposed investigation.
Kelley Smith SC had been appointed to carry out a new investigation into the fresh complaints.
According to Mr Jacobs's written evidence to the court, the Connaughton investigation examined allegations against him of "sexist, misogynistic, racist, homophobic and ageist behaviour" in comments to or about employees and found them to be baseless.
He denied allegations of having interfered with procurement processes by the state-owned company.
Mr Jacobs was suspended from his role as CEO on 15 December, after being presented with the list of 20 complaints by the board.
It followed months of wrangling between him and the board of directors of daa.
Following a mediation process, an exit package had been agreed between Mr Jacobs and daa in mid-September.
However, the package was not signed off by Minister for Transport Darragh O'Brien and Minister for Public Expenditure Jack Chambers.
Following the settlement of the case today, Mr Jacobs said he was "pleased" that his dispute with the board of daa has been resolved and an agreement reached.
In a statement, he said he is "immensely proud of the outstanding performance daa achieved in my time as CEO with record operational, commercial and financial results".
"I am delighted with the very many improvements made for passengers at Dublin and Cork airports and the infrastructure expansion that supports aviation capacity growth and sustainability change which are both vital to the Irish economy," he added.
Mr Jacobs concluded by saying "most of all, I want to sincerely thank the exceptional teams at Cork airport, Dublin airport, ARI and Daa International and wish them the very best in the future".
The Minister for Transport said himself and his officials were "kept fully informed throughout this process" by daa chairperson Basil Geoghegan.
In a statement, Darragh O'Brien said: "While as shareholder I was not, in the legal circumstances, required to approve the settlement, the board did keep my officials apprised of developments."
He said the board of daa was aware of his "dissatisfaction with the conciliated quantum" reached following a mediation process last September.
Minister O’Brien said he understands today’s settlement quantum is "considerably less".
"It is important now that the DAA continues to focus its full attention on its core responsibilities, in particular the effective operation, management and future development of our airports, which are critical national infrastructure and central to economic connectivity and growth," he added.
