Chief scout Peter Eustace, a former player and club manager, was made redundant in November 2006.

At an employment tribunal Mr Eustace, aged 63, maintained he had been booted out from his £20,000 a year job due to a run-in with Owls' chief executive Kaven Walker.

But the club insisted he was made redundant for reasons of economy and a reorganisation of scouting demanded by new boss Brian Laws.

Following a two-day hearing in Sheffield, the tribunal panel reserved judgment.

Now the parties have been informed by letter that Mr Eustace's claim has failed and is now dismissed.

Tribunal chairman Judge John Trayler says he will declare why the decision had been made in a further letter to be sent out to the parties as soon as is practicable.

Sheffield Wednesday spokesman Colin Wood said: "Sheffield Wednesday Football Club are very pleased that the judge in the recent tribunal hearing regarding former employee Peter Eustace has been concluded in the club's favour.

"The outcome vindicates the club in the decision that it made regarding this matter and confirms that this action was taken in the best interests of Sheffield Wednesday FC.

"The judgment proves that the club did nothing wrong with regard to the termination of Mr Eustace's employment and acted in a lawful manner throughout this process."