negative feedback

I received my one negative feedback around 10 months ago and settled with the buyer by returning his payment and he kept the item. He offered to contact eBay however I didn't take up the offer. Could Ebay now remove this negative feedback?

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Far to late,  and  in any event, the FB does not breach  FB policy.  If the buyer did intend for the FB to be removed or altered, and in fact  contacted ebay in an attempt to do so, they would have been advised to have you request FB revision.

Highly unlikely ebay would have removed the FB, even if you contacted them at the time, and had not  replied to the FB.