Simon Healey, 35, from Liversedge, West Yorkshire, was attacked by a springer spaniel called Toby while delivering mail in Cleckheaton, West Yorkshire, in October 1998.
The dog sank its teeth into Mr Healey's groin and shook its head for 10 seconds before releasing its grip.
Mr Healey's solicitor, David Harrington, yesterday confirmed that his client, who has been a postman for 13 years, would be paid £4,750 compensation for his injuries and would also recover damages for loss of earnings and a contribution to his legal costs. "Mr Healey is satisfied that he has received fair compensation for his injuries," he said.
In December 1998 Dewsbury magistrates made an order requiring Toby's owner, Beverley Watkins, to keep the dog under control following the incident.
Ms Watkins's solicitor, Trevor Cooper, stressed that the incident was a "one-off".
Mr Healey, a bachelor, still delivers mail to Ms Watkins's home, but a gate and postbox have been fitted so that he and his colleagues do not have to enter the garden.
Mr Healey said: "I have been told I should be able to have children, but it's still on my mind. I still have doubts."