Ventura city officials have agreed to pay $750,000 and thousands more in back pay and benefits to settle a lawsuit filed by a former Fire Department official.

Donald Bartosh will be reinstated and is scheduled to return to duty July 1 at the rank of battalion chief, according to a settlement approved by the City Council in closed session Monday night and released Tuesday.

The agreement caps a two-year battle between Bartosh and the city after the veteran firefighter was let go and forced to go on disability because of heart disease.

Under the deal, Bartosh, 53, will receive $750,000 for damages and legal fees. He also is due back pay and benefits, accrued vacation and sick time retroactive to Feb. 12, 2006. The city, however, can offset its payment by the amount of disability pay Bartosh has received so far, about $175,000, City Attorney Ariel Calonne said. Exact figures were not included in the settlement.

Bartosh will return in an administrative role, and because of his heart condition, the city has agreed to some flexibility in his workload, officials said. Bartosh has insisted he plans to work, although technically under the settlement he can choose the "level of physical presence" he is comfortable with, and can telecommute if he prefers.

After a six-month trial period, Bartosh can retire, and he and the city could split the cost of purchasing extra service years to reach the 30-year pension level, the settlement shows. In return, Bartosh agreed to drop his lawsuit.

Bartosh has an unlisted number and could not be reached for comment Tuesday. His brother, local attorney Robert Bartosh, represented him and said the city is "doing the right thing" by letting him return to work.

Ventura Fire Chief Mike Lavery described Bartosh as a dedicated, 27-year employee. When Lavery was hired as chief in 2004, he immediately promoted Bartosh, a fire captain at the time, to acting battalion chief as part of a department reorganization.

"I was disappointed to see him go then, and I am absolutely pleased to see him back," Lavery said Tuesday. "We are elated he can come back to work as part of the settlement."

Calonne said workers' compensation laws often conflict with disability discrimination statutes, which the state Legislature has fortified in recent years. Bartosh could have received $2 million had the case reached a jury, he said.

"The bottom line is that he loved his job and wanted to keep working," said Calonne, who was hired last year and vowed to closely monitor future disability claims. "He wanted his job back. I respect that. That's why we agreed to settle this case."