The man sued his employer for breaking Swedish employment law, but last week the parties agreed to an out-of-court settlement.
“There was a settlement and we agreed on the amount of money. Irrespective of what is right or wrong, the respondent wanted a decision,” said Roger Gåvsten, contracts officer at the Swedish Church, to newspaper Nya Wermlands-Tidningen.
An investigation was begun but then called off when no crime could be proven. The man admitted surfing for porn but denied the masturbation charges.
During a previous stint with the Swedish Church, the priest was fired from another parish after similar accusations. On that occasion he was paid 635,000 kronor to leave his job.