Sterling has agreed to sign off on the sale of the Los Angeles Clippers to former Microsoft CEO Steve Ballmer for a record sum and dropped his $1 billion lawsuit against the NBA, according to a statement released Wednesday to NBC News by one of Sterling's attorneys.
The statement from attorney Bobby Samini says the Sterlings have agreed to sell to Ballmer for $2 billion "and various additional benefits."
"All disputes and outstanding issues have been resolved," the statement says.
Sterling's estranged wife and co-owner, Shelly, agreed to the sale last week. The NBA approved it on Friday and canceled a June 3 meeting during which the league's Board of Governors could have voted to terminate Sterling's ownership in the Clippers.
The NBA banned Donald Sterling for life and fined him $2.5 million last month over secretly taped racist comments and said it would encourage the league's other owners to force him to sell the team he bought for $12.5 million in 1981.
The sale still has one more hurdle to pass. It requires a three-fourths vote by the Board of Governors for approval.
If the deal goes through, Los Angeles will be home to two professional sports franchises that were sold for at least $2 billion. The Dodgers were purchased for $2.1 billion in 2012.
In a response last week to the NBA's formal charges against him, Sterling had said the league's attempts to take the Clippers away were a "sham" and called the punishments levied against him by NBA commissioner Adam Silver "draconian penalties" that wouldn't be enforced by any court.
Audio of Sterling urging a female acquaintance not to bring black people to Clippers games and disparaging Magic Johnson was first published in April by TMZ.
The comments sent shockwaves through the league, leading to a protest from Clippers players, who dropped warmup jackets at midcourt before a playoff game and practiced with their shirts turned inside-out to hide the team's logo.
Sterling said the NBA was attempting to strip his ownership of the Clippers over what he called illegally recorded remarks made during a "lovers' quarrel."