From the comments..

Don't have any confirmation, but, for what it's worth, from the Fessio Post down below:

The latest word from AMU is that Fr. Fessio and the administration have come to an agreement and that he will remain at AMU in a new capacity. Deo gratias!

From the comments on this thread:

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From: Nick Healy
Sent: Thu 3/22/2007 6:22 PM
To: Fla-Faculty; Fla-Staff; FLA-Students
Subject: Father Fessio - update

We expressed yesterday that the separation of Father Fessio from the University’s administration had nothing to do with our shared commitment to our mission as a Catholic university ex corde ecclesiae.  As a sign of our esteem for his great gifts and abilities, we have asked Father Fessio and he has agreed to continue a relationship with us.  This will include the following:

(i)He will be designated a theologian in residence and maintain a room on campus.

(ii)He will join us for the Commencement exercises.

(iii) He will teach the planned summer program for high school students.

(iv)He will explore a semester abroad program in Rome and how our Austrian semester abroad program might be continued.  It is expected that in developing plans for study abroad programs Father Fessio will be spending a significant amount of time in Europe. 

(v) It is anticipated that beginning in the spring semester, Father Fessio will assume teaching responsibilities at AMU, although the precise schedule for the teaching hours will need to be worked out.

We are pleased that we can confirm the continuing association with Father Fessio and his commitment to the ongoing development of Ave Maria University in a non-administrative capacity.