Kyle Sandilands has walked away with a three-year multimillion-dollar guarantee in his settlement with radio giant and former employer ARN.

The controversial shock jock will receive $12.09m in the next three years, it was revealed in an announcement posted to the ASX on Wednesday morning after the parties settled out of court on Tuesday.

Sensationally, the statement also revealed ARN and Sandilands would enter a revenue sharing agreement in which the company will provide him with $1.5m worth of advertising for three years.

ARN will also benefit from a tidy 19.9 per cent of the earnings from Sandilands’ new venture for the same three-year period, subject to agreed revenue thresholds and caps.

ARN said it had entered a “binding settlement with Mr Sandilands to resolve all outstanding legal proceedings”.

“ARN has agreed to pay Mr Sandilands a cash settlement sum of $12.09 million with $3 million payable in July 2026 and the balance payable monthly until June 2029,” the announcement reads.

“Mr Sandilands and his related entities will not be providing services to ARN in any capacity going forward.”

ARN chief executive Michael Stephenson said the agreement brought “certainty” and would allow the organisation to drive a “leaner, more efficient operating model”.

ARN terminated Sandilands’ $100m contract in March following an on-air blow-up with his co-host of 20 years Jackie ‘O’ Henderson.

The pair entered a heated discussion during one of their daily broadcasts on February 20 after Sandilands accused Jackie O of being “off with the fairies” and suggested her work ethic had declined.

Henderson told Sandilands she was “totally offended” by his suggestions.

“That is so unfair, I have been in here doing the segment totally fine,” she said at the time.

Following the argument, Henderson left the show and did not return, sparking a termination of her contract.

At the time, ARN demanded Sandilands find a way to “remedy” the conflict under threat of a contract termination.

A separate legal battle between Henderson and ARN is ongoing.

More to come