Andrew Mallard, the man wrongfully convicted for the 1994 murder of Perth jeweller Pamela Lawrence, has been awarded $A3.25 million by the WA government for his 12-year stint behind bars.
WA Attorney-General Christian Porter announced on Tuesday the settlement had been reached after lengthy negotiations with Mr Mallard.
Mr Mallard served 12 years of a 20-year jail sentence before his conviction was quashed by the High Court in 2005.
He walked free from jail in 2006.
The murder investigation and his wrongful conviction was the subject of a Corruption and Crime Commission inquiry into whether police officers had engaged in misconduct.
Two assistant police commissioners, Mal Shervill and David Caporn, were forced to step down from their top jobs in the wake of the CCC's findings.
Mr Mallard had demanded $A7.5 million on advice from his lawyers and on the weekend opposition legal spokesman John Quigley claimed he was injected with drugs as part of efforts to make him confess to the crime.
Mr Quigley, who has championed Mr Mallard's case and lobbied for his release, said he knew the final settlement would be "miserable".
"One thing I can say with absolute confidence about this offer - Premier Barnett and Christian Porter wouldn't accept this in return for 12 years jail and the destruction of their life," Mr Quigley told AAP.
"Why should Andrew's life be valued at a lesser rate than Colin Barnett's or Christian Porter's? "In fact this sum equates to approximately to what Colin Barnett will get from the parliamentary super scheme when he retires." Police consider Mrs Lawrence's likely murderer was British backpacker Simon Rochford, whose palm print was found during a cold case review of the matter.
He committed suicide in an Albany jail after a news organisation reported he had been identified as a suspect by police.
