The Duke of York and his accuser Virginia Giuffre have reached an out-of-court settlement in the civil sex claim filed in the US.
In a letter submitted to the United States District Court on Tuesday, Ms Giuffre's lawyer David Boies wrote jointly with Andrew's lawyers to say that the parties had "reached a settlement in principle".
Court documents show the Duke will make a "substantial donation to Ms Giuffre's charity in support of victims' rights".
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Andrew has also pledged to "demonstrate his regret for his association with Epstein" by supporting the "fight against the evils of sex trafficking, and by supporting its victims".
Ms Giuffre, also known as Virginia Roberts, made the claim against Andrew for damages in her home country of the US, claiming she was trafficked by Jeffrey Epstein, Andrew's friend, to have sex with the royal when she was 17, a minor under US law.
An attachment to the letter announcing the settlement gave brief details of the agreement between Andrew and Ms Giuffre but indicated the sum would not be disclosed.
It read: "Virginia Giuffre and Prince Andrew have reached an out of court settlement.
"The parties will file a stipulated dismissal upon Ms Giuffre's receipt of the settlement (the sum of which is not being disclosed).
"Prince Andrew intends to make a substantial donation to Ms. Giuffre's charity in support of victims' rights.
"Prince Andrew has never intended to malign Ms. Giuffre's character, and he accepts that she has suffered both as an established victim of abuse and as a result of unfair public attacks.
"It is known that Jeffrey Epstein trafficked countless young girls over many years.
"Prince Andrew regrets his association with Epstein, and commends the bravery of Ms Giuffre and other survivors in standing up for themselves and others.
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"He pledges to demonstrate his regret for his association with Epstein by supporting the fight against the evils of sex trafficking, and by supporting its victims."
Responding to the settlement, Mr Boies said: "I believe this event speaks for itself."
In January, the duke's lawyers submitted 11 reasons why the case against him should be dismissed, saying he demanded a trial by jury.
Mr Boies, said his client and legal team were looking forward to "confronting" the royal about his "denials".
Representatives of the duke said they would not be commenting further than what was said in the documents submitted to the court.
