Ruddock receives tribunal settlement
The Liverpool and West Ham player was awarded the money at a tribunal in Bristol on Wednesday after The Robins admitted not paying the 34-year-old owed wages and a loyalty bonus worth the above amount.
The terms of the tribunal agreement means Ruddock's contract will be terminated and he is set to leave the County Ground outfit at the end of the month.
Swindon chief executive Mark Devlin told the club's official website: "The club are now looking forward to concentrating on consolidating and improving our position in the league.
"The last few months have been a costly distraction and now we can look to put them behind us, and also move forward for the future."
The news comes after Ruddock's lawyers made an application to the High Court last Friday to freeze the Division Two club's revenue from their FA Cup second round tie against local rivals Oxford United.
The Wiltshire club have been desperate to get the defender off the wage bill since the start of the season but when talks stalled on a settlement, Ruddock was prepared to sue the club for his back wages.
However, the tribunal has settled on a £57,000 fee for the player to receive from Swindon and Ruddock will now move on come the New Year.