The newspaper, citing sources who spoke anonymously because the settlement had not been finalized, said it would remove Jamie McCourt as an obstacle to Frank McCourt's plan to retain ownership of the Dodgers by selling the team's television rights in U.S. Bankruptcy Court.
The Times said the agreement would end what's believed to be the most expensive divorce in California history, in which the McCourts paid $20.6 million in legal bills through July.
The agreement also would set the stage for a court battle between Frank McCourt and baseball Commissioner Bud Selig, who has asked the bankruptcy judge to order the team be sold.
The Times said to keep the team, Frank McCourt would likely need Judge Kevin Gross to deny Selig's request and grant an auction of the Dodgers' television rights.
Selig and Fox Sports oppose such an auction.
The Times said it remained uncertain whether the Bankruptcy Court would allow Frank McCourt to use money from selling television rights to go toward a divorce settlement or if net proceeds from the sale of the team would exceed $130 million. Selig would not allow money from a TV deal to go toward the divorce settlement.
Matthew Hiltzik, a spokesman for Jamie McCourt, declined comment, and Steve Sugerman, a spokesman for Frank McCourt, did not respond to requests for comment, the Times said.