A source with knowledge of the situation revealed to PTI on Sunday that the AIFF top officials have granted approval for a payment of USD 400,000 as compensation to resolve the matter with AIFF.
It is quite a hefty amount for a federation that has struggled for funds in recent times and has reduced its competitions budget this year.
Earlier, AIFF had offered three months' salary as compensation after his sacking but Stimac refused and went to FIFA last month claiming USD 920,000 (approximately Rs 7.72 crore) as two years' salary from the country's apex football body.
The 57-year-old Stimac, who was appointed as the head coach in 2019, was in last October given an extension until 2026 by the AIFF.
Stimac was given a condition that he would get an extension if the team made the quarterfinals of the Asian Cup -- a feat that has never been achieved.
India finished last in the group when they participated in the continental showpiece in 2011 and 2015 editions.
Listen to the latest songs, only on JioSaavn.com
Manolo Marquez replaced Stimac as the new Indian men's team coach. The former India coach had earlier rejected offers from the AIFF to settle for five and then 10 months' salary.
(Except for the headline, this story has not been edited by staff and is published from a syndicated feed.)