Lawyers signed the deal Friday afternoon to dismiss the sexual harassment and discrimination lawsuit. According to a document filed in U.S. District Court in Savannah, Ga., both sides reached a settlement "without any award of costs or fees to any party."
Details of the settlement were not available.
"While this has been a difficult time for both my family and myself, I am pleased that the judge dismissed the race claims and I am looking forward to getting this behind me, now that the remaining claims have been resolved," Deen said in a statement.
"Those who truly know how I live my life know that I believe in kindness and fairness for everyone," she said, and she promised to take a closer look at how her employees are treated.
Earlier this month, a federal judge dismissed the race discrimination claims, but left intact the sexual harassment claims.
Deen and her brother, Bubba Hiers, were sued by Lisa Jackson, a former Savannah restaurant manager, last year. Jackson alleged she was subjected to sexual harassment and racist attitudes during the five years she worked at their restaurant.
Deen was swamped in controversy since court documents filed in June revealed Deen admitted that she has used the N-word. "Yes, of course," Deen said, though she added, "It's been a very long time."
The Food Network and other business partners dropped Deen after she acknowledged the racial slurs.
The Associated Press contributed to this report.