The family of a teenager who died at Albany Regional Hospital, after being admitted with tonsillitis, say they have reached a settlement with the Health Department for an ex-gratia payment.

Kieran Watmore, 17 died hours after he was admitted in 2008.

The coroner ruled systemic deficiencies at the hospital led to the death.

The family had been suing the Government but dropped the action earlier this year in the hope of reaching a quicker settlement.

Kieran's father, Jim Watmore, says they have reached a 'workable final agreement'.

Mr Watmore says he is relieved the matter is finalised and grateful to the Health Minister, Kim Hames for resolving the issue.