The Yorkshire Post has learnt that as well as a final settlement in the region of £200,000, Kaven Walker also continued to receive his full salary of £175,000 up until this month. In addition, Walker, who fought his corner after being removed, has had all his legal fees paid.

It can also be revealed that former Owls' chairman Dave Allen is to inject £6m – £2m more than previously envisaged – into League Two club Chesterfield. The deal, due to be confirmed today, has received Football League approval which allows Allen to maintain his financial interests, including loans, in Wednesday.

The Owls said Walker had left by mutual consent when the club announced he was being replaced by Nick Parker as part of a regime change which also saw Lee Strafford become chairman shortly afterwards.

Walker cannot comment due to a confidentiality clause in the agreement but it is understood he only accepted the final pay-off after rejecting a series of lower offers.

Wednesday, who are burdened with debts of around £26m, said the settlement was confidential.

Former chairman Allen has confirmed he has received the go-ahead to complete his takeover at Chesterfield.

He also warned Wednesday would be facing "D-Day" on repayment of his and other loans in the club next May.

Allen said: "It's all agreed. The plan is to get the club into the Championship as soon as possible. There's great potential out here in Derbyshire, it's a nice family club with a nice family atmsophere that can really be developed."

His investment includes £4m to buy a majority shareholding and a £2m loan. The bulk of it is set aside to provide the final funding for a new £13m stadium in the town.

Allen has secured agreement with the Football League to maintain his outstanding loans of around £2.5m in Wednesday. He had previously reduced his number of shares to comply with League rules barring anyone holding more than 10 per cent of two clubs' shareholdings but the rules governing loans in another club are less clear cut.

Neither Allen nor the Football League would discuss what undertakings the former chairman has made surrounding the loans to block any potential influence they represent on Wednesday's affairs.

But Allen said: "My loans still stand in Sheffield Wednesday and I'm waiting for them to be repaid. I'm continually reading about extra money for players and it concerns me that they don't appear to be addressing the debt. Sometime judgement day is going to come.

"All the loan note holders are due for repayment next May – that's D-Day and the matter will have to be addressed then."