Jennifer Fitzgerald's lawsuit against the city alleged her ex-boyfriend registered the offending vehicle in her name without permission before abandoning it at an O'Hare International Airport parking lot, where it received 678 parking tickets in two years, WBBM-AM, Chicago, reported Thursday.
Fitzgerald's attorney said the car was not towed for 2 1/2 years and should have been removed far earlier.
A judge tossed out Fitzgerald's lawsuit in April and urged the two sides to reach a settlement.
Fitzgerald has now agreed to pay a reduced bill of $4,470, officials said.
Fitzgerald's suspended driver's license will be returned to her when she pays off the fine. Her ex-boyfriend has agreed to contribute $1,600 toward the sum.