A settlement of $3.5 million has been reached between former Fresno State Associate Athletic Director Diane Milutinovich and the university.

The university will also recognize her as an employee emeritus for her three decades of work at Fresno State.

The settlement was announced Thursday afternoon during a news conference at the Fresno County Courthouse around 3:30 p.m.

Milutinovich thanked her family and attorney for their support over the past five and a half years.

Milutinovich worked for Fresno State for 27 years before she was placed on administrative leave in 2006.

Milutinovch alleged she was wrongfully terminated for sexual discrimination and retalliation for advocating gender equity.

The settlement comes at the same time that two other former female Fresno State Athletics department employees are in the middle of their own legal battles with the university.

Earlier this year former women’s volleyball coach Lindy Vivas was awarded $5.8 million in her wrongful termination lawsuit against Fresno State.

On Wednesday, jury selection began in the trial of former Fresno State basketball coach Stacy Johnson-Klein.

Johnson-Klein alleges she was wrongfully terminated and also experienced sexual discrimination in the athletic department.

During testimony in the Vivas trial, Milutinovich said she witnessed first hand the hostile and volatile situation that was reportedly brewing in the Fresno State athletic department.

Milutinovich described an incident in October 1995, after the office of civil rights found the university in violation of almost every aspect of title nine, which mandates schools that receive federal funding are required to distribute resources equally between men’s and women’s sports.

The former administrator said a handful of coaches and other staff took their issues with title nine to a local radio show.

According to Milutinovich, the show blasted three women herself, softball coach Margie Wright and Vivas.Wright and Milutinovich sued-Vivas did not.

Milutinovich said she was told she was reassigned because of budget cuts--although she believes her position was the only one eliminated for that reason.

Fresno State released the following statement regarding the settlement:

"You may read in upcoming media reports about a $3.5 million out-of-court settlement in the Milutinovich lawsuit. Today, the California State University did settle the case at that amount which includes all legal fees and associated legal costs. CSU believes that this positive resolution was the best course of action to benefit the community, the university, our students and the individual involved. With resolution of this matter, the university can put this past issue behind us to focus on the future. We've made great progress in gender equity. Fresno State will remain vigilant and continue to assure that we not only comply with the law but actually are leading the way. We pledge to continue work with a sense of urgency and commitment to build on the progress we've made in gender equity over the past ten years. "

Click on the video link to watch Theresa Freed's story.