Dee Mazurkiewicz, 42, had her career with Thames Valley police ruined by a campaign of intimidation and insults including claims she obtained confessions from suspects by "getting her boobs out".
An industrial tribunal in Reading, Berkshire, ruled in her favour last November, but yesterday the force agreed to pay her compensation. This is believed to include pounds 21,000 for every one of the 14 years remaining of her career.
A police source, however, suggested that the undisclosed payment was significantly lower.
The Police Federation, which represented Ms Mazur-kiewicz, described the award as a landmark decision. It said other cases had not gone the whole way: they had either been settled outside tribunals or decisions have been appealed against by police forces.
Thames Valley police are currently appealing against another tribunal ruling in favour of a woman officer, Kay Kellaway, who won a sexual discrimination case last October.
Ms Mazurkiewicz said yesterday: "It is a great relief for me that this is finally over. It has taken four years of my life.
"It has been very difficult for me. I feel very emotional. I have won my court case but I have lost my job. I have lost an awful lot.
"My career was what was important to me and no compensation can make up for that."
Ms Mazurkiewicz will retire from the force on Sunday on the grounds of ill health.
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