He pleaded guilty to killing a U.S. Army medic and became the youngest inmate held at the military prison in Cuba.
Canada on Friday formally apologized to a Canadian man held at the US military base in Guantanamo, Cuba, for a decade and said it had reached a financial settlement with him, acknowledging officials had played a role in the abuse he suffered.
The apology was delivered to Khadr in a terse statement from Goodale and Foreign Affairs Minister Chrystia Freeland.
"The settlement that we have announced has to do with the wrongdoing of Canadian officials with respect to a Canadian citizen", he said. A USA judge granted $134.2 million in damages in 2015, but the plaintiffs acknowledged then that there was little chance they would collect any of the money from Khadr because he lives in Canada.
The deal with Omar Khadr marks the fifth time the Canadian government has settled with citizens who were detained overseas following the September 11, 2001, attacks in the United States.
He was convicted of five crimes, including throwing a grenade that killed Speer in 2002. Khadr received the money Wednesday, sources told CBC News.
The government and Khadr's lawyers negotiated the deal last month, based on a 2010 court ruling that Canadian officials violated his rights at Guantanamo.
Mr Goodale said at a news conference on Friday that reaching a settlement "was the only sensible course".
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For the record, I was a member of the Conservative caucus in the previous 41st Parliament where the Conservative government staunchly opposed the payment of any funds to Khadr.
On Friday morning, a lawyer representing the widow of the dead American soldier, Tabitha Speer, and the injured soldier, Morris, confirmed he would move ahead in Ontario Superior Court to freeze the payout to Khadr.
Mr Goodale denied any claim the settlement was rushed to block legal attempts to halt the payout by the pair.
Khadr spent a decade in Guantanamo before being returned to Canada in 2012 to serve the rest of his sentence and was released in 2015. He was released on bail in Canada in 2015.
His case has divided Canadians.
Supporters have also long pointed to the fact that he was just 15 years old when he committed the acts he confessed to - and therefore he should have been treated as a child soldier in need of protection, not prosecution. Others argue he was a radicalised fighter at the time of his capture. The Canadian Taxpayers Federation has gathered over 50,000 signatures on a petition it is circulating that condemns the actions of the Trudeau government.
"The repatriation of Omar Khadr is the remedy", Scheer said.