The ABC and Michelle Guthrie have resolved the unfair dismissal case brought by the former managing director.
Ms Guthrie was ousted from the top job in September, halfway through her five-year tenure.
In a statement the ABC said details of the settlement would remain confidential.
"The ABC and its former managing director Michelle Guthrie are pleased to announce a resolution to their Federal Court litigation," the statement said.
"No further public statement will be made regarding the resolution by the ABC or Ms Guthrie."
Ms Guthrie launched legal proceedings against the national broadcaster in October, claiming the board had no reason to trigger a termination clause in her contract.
At the time of her departure, then-ABC chairman Justin Milne said the board had decided it was not in the best interests of the national broadcaster for Ms Guthrie to continue to lead it.
Just days later, Mr Milne resigned following allegations he bowed to political interference in relation to the performance and employment of ABC journalists.
Media veteran Ita Buttrose was on Thursday announced as Mr Milne's replacement as ABC chair.
She said her priority was to get the public broadcaster "functioning again" and "restore stability" with its management.
