A WOMAN who accused Blackburn with Darwen Council of sex and race discrimination has withdrawn her case after agreeing a secret deal with the authority.

The council worker, who cannot be identified for legal reasons, had been offered £15,000 last week to drop her case against the council -- if she kept quiet.

No details of the new deal have been released and both sides agreed not to discuss the case publicly.

The employment tribunal in Leeds heard the Muslim woman accuse the council of sex and race discrimination and describe a catalogue of harassment incidents over a 10-year period while she worked there.

While giving evidence she told of 10 years of harassment including frequent references to her as a "bitch" and a "whore" and an incident in which a male member of staff is alleged to have put his hand in the back pocket of her jeans and commented she was wearing no underwear during a night out. She was also questioned about a staff party at the transvestite club Funny Girls in Blackpool, a visit by her to an Anne Summers party held by another member of staff, and her having a phallic-shaped key-ring on her desk.

But before she could be cross-examined further the tribunal was adjourned yesterday to allow both sides to visit ACAS, the arbitration service, after the chairman told the woman bringing the case it would be in her interests to take independent legal advice. Up to then she had been representing herself.

Following that meeting the woman's case was withdrawn and a settlement agreed between the two parties, although no details were given to the tribunal as to whether any financial deal had been struck.

In a statement, Blackburn with Darwen Council executive director for corporate resources, Harry Catherall, said: "The applicant has withdrawn her claim and the case has been dismissed. Both parties agreed there would be no further public statement on the matter."

The woman refused to comment.