The city is paying out $100,000 to the estate of a man shot dead by a cop who was first feted for heroism and then hit with departmental charges for not retreating.

Gilberto Blanco was breaking into a car in a Coney Island parking lot when he was confronted by officers Dawn Ortiz and India Archie in November 2008.

He swung a folding chair at the cops and Ortiz fired one shot that killed the 45-year-old unemployed construction worker.

The cops were hailed as heroes and named “Cops of the Year” by the NYPD’s Holy Name Society.

But a departmental review of the shooting determined they should have retreated – even though they were reportedly backed against a hedge – and perhaps have employed batons or pepper spray before shooting.

The officers opted to face charges rather than accept a slap on the wrist.

Lawyer Herb Subin, who negotiated the settlement, said the city caved in after Ortiz’s testimony in a hearing last year.

He said her version of the shooting – that Blanco was swinging a chair at her head – was belied by the fact the single round struck Blanco in both his wrist and chest.

Subin said the settlement was a “clear acknowledgement” that the shooting was an “injustice.”

“We’re glad the truth finally came out,” he said.

A spokeswoman for the city’s Law Department confirmed the settlement but declined to comment further.