St. Paul attorney Michael Padden told the Minneapolis Tribune that while a lawsuit hadn't been filed, the dispute was resolved through negotiation.
"I can tell you the case was settled in principle two weeks ago," Padden said.
Terms of the settlement were not revealed.
Toni Medrano, 29, of Cottage Grove killed herself in July, a few weeks after being scorned as "Vodka Mom" by CNN talk-show host Nancy Grace.
Medrano allegedly drank a fifth of vodka before rolling onto and asphyxiating her 3-week-old son Adrian on a couch in November 2011. In June 2012, she was charged with in Washington County District Court with two counts of manslaughter and she was fatally burned at her home in July after Grace's negative portrayal of her.
The St. Paul Pioneer Press reported Padden said the agreement between the family and CNN Worldwide, the parent company of the show "Nancy Grace," was to be filed in Dakota County District Court Friday. He said both sides agreed to a non-disclosure clause to keep the terms secret.