The agreement comes one day before Armstrong was to testify under oath regarding doping allegations. He had been sued by Acceptance Insurance, which was seeking to recover $3 million in bonuses Armstrong was paid when he won the Tour de France from 1999-2001.
Armstrong won cycling's most prestigious race seven times beginning in 1999 but those titles have been vacated in the wake of Armstrong's admission of using performance-enhancing substances.
He denied for years the use of PEDs and pointed to a lack of positive drug test results as proof. U.S. Anti-Doping Agency officials accused Armstrong of breaking illegal substance rules in June 2012 and. in January. Armstrong admitted in an interview with Oprah Winfrey that he had indeed used PEDs.
Armstrong's attorney Tim Herman told USA Today on Wednesday that the Acceptance Insurance lawsuit was "resolved to the mutual satisfaction of the parties." He gave no details.
Armstrong is the subject of three other legal actions in both state and federal courts. The U.S. government is one of the plaintiffs, as it is trying to recover funds Armstrong collected while a member of a cycling team sponsored by the U.S. Postal Service.
Celebrity Couples of 2014 [PHOTOS]