Dale Iman stepped down earlier this month after a majority of council members were critical over his handling of the police department's consent search controversy, and other issues.
The city council's unanimous decision, which was mostly a formality, means Iman will receive a $215,000 severance package.
In an email message to city employees, Iman praised them saying, "You, the employees of this city, are truly devoted to ensuring that the future of Fayetteville will be bright as you work hard every day to make it a more vibrant community."
By way of an apology, Iman criticized the way he was forced out saying he was sorry that city employees had to learn of his pending resignation from the media.
His resignation is effective Sunday.
The city has hired a consultant firm to lead a nationwide search for a new city manager.