Geoff Marsh, the former Australia vice-captain, has reached an undisclosed financial settlement with Sri Lanka over his sacking as coach of the national team in January 2012.

Marsh was relieved of his duties only four months into his tenure as head coach following the tour of South Africa, where Sri Lanka won one of three Tests - their first victory in the country.

His exit coincided with a number of changes happening at SLC's board level, with the captain Tillakaratne Dilshan as well as the selection panel being replaced around that time. Marsh subsequently initiated legal action against SLC for wrongful termination of his contract, lodging his claim via Sri Lankan legal representatives in Colombo in May last year.

Upon his return to Australia, Marsh was appointed development coach for Western Australia, where he coached the state's Futures League and second XI teams, while also overseeing the growth of cricketing talent in the state. His two sons, Shaun and Mitchell, both represented Australia in recent times.

Marsh's manager and solicitor, Stephen Atkinson, said Marsh was pleased to have put the whole issue behind him.

"We were successful in negotaiting a settlement prior to the commencement of the trial," Atkinson said. "Geoff is delighted that this matter has now been resolved and he can fully concentrate on his various coaching roles in Australia and in particular his coaching duties with the Western Warriors."

The South African Graham Ford was chosen to replace Marsh, seeing out his own two-year contract before taking up the coaching job with Surrey in England.

Speaking after the settlement was reached, SLC chief executive Ashley de Silva defended the board's decision to sack Marsh and said: "The committee took the decision at that time, and it was the right one for Sri Lanka cricket."

Daniel Brettig is an assistant editor at ESPNcricinfo. He tweets here