The former Tigers boss told the Worksop Guardian last February that he intended to take legal action against the world’s fourth oldest club, calling his dismissal unfair.
On Tuesday the club released a short statement confirming they have reached an agreement with Shaw, now manager at Sheffield FC, over his 2017 departure.
“The club would like to take the opportunity to thank Mark for all his efforts whilst he held the position as first team manager,” it read.
“The club’s new owners regret the situation in which Mark was placed and wish him all the best in his new role at Sheffield Football Club.”
Shaw said the club’s decision to settle the dispute was the right course of action.
“I can’t say too much about this but I feel that the club have finally done the right thing after nearly 18 months of hell, which they had no need or grounds to put me through,” he said.
“I did nothing but try and help the football club in my time as manager, I attempted to make it a better place.
“I stepped up when things were going wrong, brought success on the field with attractive attacking football and a business off it.
“I was extremely disappointed to go and the manner in which I left.
“I can finally put the nightmare which was the end of my Worksop Town career to bed.”
Shaw has vowed to now pursue others but says his dealings with the club have concluded in a satisfactory manner.
“I will be chasing the people who have tried to ruin my reputation and career legally, but for now I just want to take the opportunity to thank the people who supported me through this; Rachel Webster, close friends and my family.
“I would also like to thank my solicitors Taylor Bracewell who have helped me legally through the many issues that were created.
“I feel satisfied fairness and justice has prevailed after being treated so poorly andI now can concentrate on my managerial career, business and family.”
He took charge of the Tigers in April 2013 and led them to the Northern Premier League play-offs, before the club took a voluntary two-division drop to the Northern Counties East League Premier.
Shaw’s Worksop finished in second, four points behind league winners Shaw Lane in the 2014/15 season and fourth in the following campaign.
He was suspended in November 2016 and eventually dismissed two months later, claiming his departure was nothing to do with matters on the pitch, but because he set up Tigers Enterprises, a private limited company from which he ran a Worksop Town academy and community projects.
That company was closed down in 2016 and the club took control of the academy, which collapsed soon after.