Amy Sorrell, 30, reached an agreement that allows her to be transferred to another high school to teach English, said her attorney, Patrick Proctor.
"The school administration has said in no uncertain terms that she's not going to be given a journalism position," Proctor said.
Sorrell, who had been an English and journalism instructor at Woodlan Junior-Senior High School, was placed on paid leave March 19, two months after an editorial advocating tolerance of homosexuals ran in Woodlan's student newspaper, The Tomahawk. Sorrell had been the newspaper's adviser.
School officials in the conservative northern Indiana community about 10 miles east of Fort Wayne said Sorrell did not comply with an agreement to alert the principal about controversial articles.
The agreement she signed includes a written reprimand that says she neglected her duties as a teacher and was insubordinate in refusing to obey school officials' orders.
Sorrell said she is "very proud" of Megan Chase, the student who wrote the editorial calling for tolerance and acceptance of gays, and the Tomahawk's other writers and editors. But she said she could not financially afford to fight the school district over her discipline.