Attorney Mark Geragos and the league released joint statements about the resolution Friday.
"For the past several months, counsel for Mr. Kaepernick and Mr. Reid have engaged in an ongoing dialogue with representatives of the NFL," the statement said. "As a result of those discussions, the parties have decided to resolve the pending grievances. The resolution of this matter is subject to a confidentiality agreement so there will be no further comment by any party."
Kaepernick first filed the grievance in October 2017 under the collective bargaining agreement, alleging that there was collusion against signing him to an NFL contract. The filing cited that the league and its owners colluded to keep Kaepernick out of the NFL for reasons related to his leadership and advocacy for equality and social justice.
Reid filed his collusion grievance in May.
Kaepernick earned attention on the national scale when he knelt during the national anthem in the 2016 season to protest social injustice. Reid later joined Kaepernick in the kneeling while they were teammates with the San Francisco 49ers.
Reid signed with the Panthers before Week 4 of the 2018 season and went on to start 13 games. He signed a three-year, $22 million contract extension with the team Monday.
"Today, we were informed by the NFL of the settlement of the Colin Kaepernick and Eric Reid collusion cases. We are not privy to the details of the settlement, but support the decision by the players and their counsel," the NFL Players Association saidin a statement.
"We continuously supported Colin and Eric from the start of their protests, participated with their lawyers throughout their legal proceedings and were prepared to participate in the upcoming trial in pursuit of both truth and justice for what we believe the NFL and its clubs did to them."
Kaepernick has not been with an NFL franchise since he opted out of his contract with the 49ers in 2017.