The family of a man who died after being shot by a British soldier more than 50 years ago in Londonderry have been awarded a “significant financial settlement”.

William McGreanery, 41, died on 15 September 1971, a week after a soldier opened fire from an Army observation post overlooking the Bogside.

The family cannot disclose the amount they received due to a confidentiality clause.

Mr McGreanery’s nephew Billy said the settlement reflected the “death, pain, anguish and sorrow” that the Ministry of Defence had inflicted on the family.

Mr McGreanery, a shop assistant, was shot after a member of the 1st Battalion Grenadier Guards – known as Soldier A – opened fire from an Army sanger overlooking the junctions of Eastway, Lone Moor Road and Westland Street.

In June 2011, the Historical Enquiries Team (HET) found he “was not carrying a firearm and he posed no threat to the soldiers”.

Later that year, the Chief of the General Staff of the British Army sent an official apology to the McGreanery family and in 2013 an apology was also made by the armed forces minister, Andrew Robathan, in the House of Commons.

Earlier this year, Northern Ireland’s Attorney General ordered a fresh inquest into the death of William McGreanery.

That direction came a day after the Public Prosecution Service (PPS) said there was insufficient evidence to prosecute the soldiers suspected of shooting him dead.

The McGreanery family have asked for that decision to be reviewed.

In a statement, Mr McGreanery’s nephew Billy who was 13 when his uncle was killed, said the family would continue to pursue justice.

“I liken this process to a three-course meal that we fought very hard for and earned,” he said.

“The starter was the apologies for the wrongful killing of Billy, and today is the dessert, financial retribution.

“But they skipped the main course – justice… the PPS review puts the justice we crave firmly on the plate, and only a prosecution will satisfy our need for the justice we rightly deserve.”

The McGreanery family solicitor Gary Duffy said the settlement announced on Thursday was “long overdue” but also a “welcome endorsement of the family’s campaign to uncover the truth”.

He said Mr McGreanery’s killing had been “unjustified and unjustifiable” adding that the case “highlights the value and merit of such legacy civil actions in truth recovery and obtaining justice”.

Mr Duffy added: “Furthermore, it exemplifies the need to move beyond the Legacy Act and its bar to prosecutions and inquests.

“We look forward to the reinstatement of the family’s inquest and for a decision on the prosecution of the soldier who shot and killed Billy.”