Heard, who made the announcement in a post on Instagram, did not disclose the terms of the deal, which comes after a Virginia jury ordered Depp to pay $10 million.
The 36-year-old actress said she would drop her appeal of the damages Depp had been ordered to pay because she “simply” wasn’t able to go through another trial.
“I make this decision after losing faith in the American legal system, where my public testimony served as entertainment and commentary on social media,” he said.
“Now I finally have a chance to get out of something I tried to get out of over six years ago and on terms I can accept.”
The actress had initially appealed the June verdict in a state court in Fairfax, near the US capital, which ordered her to pay $10 million to the “Pirates of the Caribbean” star, who in turn had to pay $2 million to heard.
The legal battle between the ex-spouses stemmed from a column published by The Washington Post in 2018, in which Heard described herself as “a public figure representing domestic violence,” without naming her ex-husband.
Depp, 59, claimed that the text had destroyed his reputation and career, and sued his ex-wife for defamation for $50 million in damages. Heard countersued and demanded double.
At the end of a six-week trial, jurors concluded that the ex-spouses had defamed each other, but estimated Depp’s damages were greater.
The trial, based on bitterly disputed allegations of domestic abuse, revealed intimate details of the Hollywood stars.
Broadcast live on television, it was followed by millions of viewers around the world, and caused an explosion of hostile messages towards the actress on social networks.