Ms Black was suspended in February after the overspend on the £5.7m budget came to light. The council said: 'Both parties accept there no longer exists the necessary professional relationship and feel it is in the best interests of the education service, and of Ms Black herself, that the recent uncertainty involving the director's position is resolved.'
Ms Black's salary was around £56,000, and her five-year contract was due to end in March 1995. She was paid off 'in accordance with the council's obligations under her contract'.
John Nellist continues as acting director of education.