Former AFL coach Dani Laidley has reached a financial settlement with Victoria Police after a mugshot of her was leaked on social media by officers.

Former AFL coach Dani Laidley has reached a confidential financial settlement from Victoria Police.

The payment comes almost two years after images of the former West Coast Eagles and North Melbourne player and coach wearing a blonde wig, dress and make-up were leaked by police officers and shared on social media.

Laidley alleged police breached their duty of care and sought "aggravated and exemplary" damages for being "brought into public ridicule and contempt".

She was arrested for stalking a woman, and was spared a conviction and placed on an adjourned undertaking instead.

In a statement release on Tuesday night, Victoria Police confirmed that the matter had been settled and court action discontinued.

"By agreement of both parties to the litigation, the terms of settlement are confidential," the statement said.

"As per standard process, any discipline proceedings relevant to the members charged criminally will follow the conclusion of those criminal matters."

The amount of the settlement is unknown.

Ms Laidley will also receive thousands more dollars by 11 police officers implicated in the public leak of her mug shot.