The deal, for less than half the $2 million the former MTV star is reported to have originally sought, will let Vivid Entertainment Group of Los Angeles release a video called "Farrah Superstar: Backdoor Teen Mom," the celebrity news website reported.
The 21-year-old mother of 4-year-old Sophia Laurent Abraham originally denied ever doing a video and later claimed the 70-minute tape was intended for her personal use only.
Pornographic actor James Deen, who appears in the sex tape with Abraham, eventually told the website of NBC-TV's "Today" program it was all planned out from the start.
"If you're going to make a celebrity sex tape and try to pass it off as an amateur home video, you don't hire a well-known porn star!" Deen said in a posting that appeared April 11. "You hire, like, some random dude."
Meanwhile, Abraham pleaded not guilty Monday to drunken driving in Omaha, Neb., March 18, TMZ said.
Her lawyer entered pleas of not guilty to aggravated driving under the influence, refusal to take a field test and disorderly conduct, the website said.
A blood-alcohol test indicated Abraham had a .147 blood-alcohol level, nearly twice the legal limit, the police report indicated.
She told TMZ Live the following week she wouldn't challenge the test and said she did nothing wrong.
She said she was "getting drinks from friends" but "not really trying to drink -- it was St. Patrick's Day night."
She said when police stopped her she was "not even driving at the time -- I was only in my car turning the corner and parking my vehicle."
She also said she had "a sober friend" with her in the car but he didn't drive because he didn't have a license.