A gay principal in the US state of Oregon who says he has been forced to quit his job because of homophobic discrimination is said to be close to resolving a legal dispute.

Tom Klansnic of North Gresham Elementary in Gresham, Oregon, was the school’s principal for 10 years.

But last month he was told by the Gresham Barlow School District that his contract would not be renewed at the end of the year.

Attorney Judy Snyder alleged that school officials began to treat the principal differently after he revealed his sexuality three years ago.

The district insisted that the decision to dismiss him was not related to his sexual orientation.

In a statement released on Wednesday, the district said the dispute with Mr Klansnick is close to being resolved “without an admission or finding of liability or wrongdoing.”

Mr Klansnick is no longer the principal of North Gresham Elementary.

Oregon state law protects anyone from discrimination because of sexual orientation and gender identity.