The settlement was reached in a Los Angeles court on Friday. Details of the deal between Kasem's wife, Jean, and his daughter, Julie Kasem, were not divulged.
Julie Kasem had been seeking a conservatorship, claiming she and her siblings weren't allowed to see their father, who is suffering from advanced Parkinson's disease. Her attorney Andrew Katzenstein says the terms of the settlement are confidential.
Kasem's other daughter, Kerri, has not reached any agreement. Her attorney says she may file a petition to see her father without certain restrictions.
The 81-year-old is currently hospitalized but no details are being provided.
Kasem gained fame with his radio music countdown shows, "American Top 40" and "Casey's Top 40." He was also the voice of Shaggy in the cartoon "Scooby Doo."
The Associated Press contributed to this report.