Details of the deal, said to have been struck at the Bronx Supreme Court in recent days, are expected to be subject to a confidentiality agreement.
DSK was held in New York in May 2011 after Nafissatou Diallo said he assaulted her in his hotel suite.
Prosecutors later dropped charges amid concerns about her credibility.
Nafissatou Diallo, 33, then opened a civil suit for undisclosed damages against Dominique Strauss-Kahn.
DSK, 63, called the lawsuit defamatory and countersued.
Her case opened the floodgates to a slew of others sexual allegations against DSK, leading him to resign from his IMF post.
It was widely seen as having ruined his chance of becoming the socialist presidential candidate in his native France.
A court date between DSK and Nafissatou Diallo’s lawyers is expected next week, although a day has not been set, reports the New York Times.
She told police that when she arrived to clean his luxury Manhattan hotel room, DSK sexually assaulted her.
DSK admitted to a “moral failing”, but said it was consensual.
Earlier this year DSK separated from his wife of some 21 years, Anne Sinclair.
Sex cases against Dominique Strauss-Kahn
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