The boy's family lodged a complaint with the Anti-Discrimination Commission Tribunal last year, claiming the school's enrolment policy amounted to religious discrimination.

The college defended its stance when the case came to media attention earlier this year, but has now apologised to the family as part of a confidential settlement.

Lawyer Scott McDougall, of Caxton Legal Centre, said the family, which could not be named due to a suppression order, was happy and relieved the issue was resolved outside of court.

He said the family members had not wanted to damage Ormiston College's reputation because they still believed it was a good school.

"My clients were motivated by the interests of all faiths and the Sikh community," he said.

"Hopefully other schools will take heed of the outcome of this case."

Ormiston College headmaster Brett Webster said it was "regrettable" the issue had arisen at all, but the school was happy with the resolution.

He said the school, which describes itself as independent and non-denominational, had apologised for any hurt caused and would review its enrolment practices and uniform policy during the next few months.

"There was a difference of opinion on uniform.

"There was never any intention to offend anybody or hurt anybody," Mr Webster said.

"Should we consider that there is a need to alter out enrolment practices and uniform policy to maintain alignment with Anti-Discrimitation legislation we will do so."

But Mr Webster said it was "too soon" to say whether Sikh students would now be allowed to wear turbans at the school as that decision depended on the findings of the uniform policy review.

The family involved in this case has moved from the Redlands and the boy is in Year 9 at a different private school.