SUSPENDED York commercial services director David Finnegan has left City of York Council.

The council today confirmed that Mr Finnegan was moving "on to pastures new".

A statement from the authority revealed that the council had agreed that "David can take the opportunity to retire and seek new challenges after a lengthy career in local government".

The Evening Press revealed last week that councillors had agreed to fund an early retirement package for the former director suspended over what one council source said was linked to "very sensitive disciplinary issues".

Guildhall sources told us that a compromise agreement had been agreed by the council's urgency committee - despite the objections of Labour leader Dave Merrett, who said the offer to Mr Finnegan was an "unreasonable" cost to the council and taxpayer.

Coun Merrett said strict confidentiality on the deal meant he could not reveal anything else about the offer, or even whether it had been accepted.

Today's council announcement brings to an end a political wrangle which has rumbled on since August. Mr Finnegan has worked for City of York Council for ten years and was in charge of one of the authority's most high profile departments.

The council's chief executive, David Atkinson, said: "In the context of the imminent council-wide restructuring, in which the new directorate of neighbourhood services is created, the council has agreed that David can take the opportunity to retire and seek new challenges after a lengthy career in local government.

"David was appointed in 1995 and has held the post of director of commercial services since York was created a unitary authority in early 1996.

"During that time he has led commercial services successfully through the old compulsory competitive tendering regime, played a key role in major events such as the floods of 2000 and Royal Ascot at York, and latterly he established StreetScene, led the council's waste strategy and was instrumental in setting up the PACY scheme to assist the reforming of drink and drug users through employment."

Mr Finnegan, who lives in Easingwold, has consistently refused to comment on any aspect of his suspension.

Updated: 09:22 Wednesday, October 12, 2005