After a lengthy dispute the Bantams have been told to pay training compensation for the striker who left the Scottish First Division side in the summer of 2011.
The npower League One side will pay £215,620 for the 24-year-old's services who has since moved back to Scotland with Dundee.
City originally argued their case on the basis of differing registration procedures between Scottish and English football associations and confusion over his date of birth.
Falkirk chairman Martin Ritchie told the club's official website: "We always believed we had a strong case but it has taken a lot of hard work from people in and around the club to get this result and they should be applauded for their tenacity and efforts."
He added: "And of course, financially, it is a tremendous boost."