Lewis Crocker received a settlement in a case brought against the Ulster Boxing Council under fair employment law.
The Belfast man, who is now a successful pro fighter, believed he was not picked for the NI Commonwealth Youth Games squad because of his perceived religious belief or political opinion.
The boxer, whose case was supported by the Equality Commission, was not selected despite being recommended by Irish Amateur Boxing Association’s head coach for Ulster.
Crocker, 21, said it was a “real shock” when he was not chosen for the team to take part in the 2015 games in Samoa.
“The UBC even refused to hold a box-off to decide who the best boxer was, a process which they have used before,” he added.
In a statement, the secretary of the Ulster Boxing Council said: “We are very happy that this has been brought to a conclusion for Lewis and his family. We hope that this gives him closure.
“Lewis has been a tremendous loss to Ulster amateur boxing by turning professional.”
“Myself and our president Kevin Duffy were elected in October 2017 and we want to help modernise policy, procedures and practices to make sure this doesn’t happen again.”
Dr Michael Wardlow, from the Equality Commission, said: “There certainly should never be any suggestion of a person’s religious or community background being a consideration for team selection.”
He added that since the case was brought the UBC has introduced new policies, practices and procedures to ensure compliance in line with its obligations.
Crocker has no forged a reputation as one of Ireland’s best young prospects having won all seven of his pro fights, six by way of knockout.