Stephen Lumwai went to North Wingfield Junior School and later Tupton Hall School.

He left school after getting poor GCSE results in 1996, but it was not until three years later that his dyslexia was diagnosed.

Mr Lumwai, who is now 22 and a restaurant manager in Leeds, said he felt let down by the two schools.

Derbyshire County Council has admitted liability.

It said it investigated his claims and based the cash offer on the advice of education experts.

Its insurers will cover the cost of the out of court settlement.