Collingwood Football Club has settled a lawsuit with a former employee who accused chief executive Craig Kelly of using slurs and making jokes about Indigenous culture.

The club has defended the allegations and its staff, saying Mr Cleaver's claims were investigated and that no workplace laws had been breached.

On Monday evening, the Pies and its former head of First Nations strategy, Mark Cleaver, released a joint, two-line statement confirming the case had been settled at mediation.

Details of the settlement were not revealed.

"Mark Cleaver and the Collingwood Football Club announce that the legal proceedings have been resolved," the statement read.

"It is requested that Mark's privacy be respected and the parties have agreed not to make any further statements."

Mr Cleaver filed the lawsuit in July, claiming he had suffered "hurt, humiliation and distress" and "economic loss" after the club terminated his employment in May.

In court documents, Mr Cleaver alleged the club breached several laws, including the discrimination acts around race, disability and equal opportunity.

The allegations against Mr Kelly included that he threw a ball at Mr Cleaver, causing him humiliation and pain because of his multiple sclerosis. 

Mr Cleaver also claimed Mr Kelly made disparaging comments about Indigenous culture and a female elder.

When the legal claim was lodged, Collingwood insisted its staff had acted lawfully and said it intended to defend the case.

In July, Collingwood president Jeff Browne also said he had full faith in Mr Kelly. 

Mr Browne said an external expert in workplace relations had been engaged to conduct a review, and that the review found no breach of workplace laws.

The club said Mr Cleaver's termination was due to conduct unrelated to his complaint.