Giuffre had accused the prince of "raping her when she was a teenage victim of Andrew's friend, the notorious sex offender Jeffrey Epstein," The New York Times writes. Andrew has repeatedly denied the allegations.
The amount upon which the two parties settled is confidential, but the British royal will also make a "substantial donation" to Giuffre's charity supporting victim's rights, per a joint statement attached to the court filing.
"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," read the statement, which also commends Giuffre for her "bravery," a characterization that "contrasts sharply" with the way Andrew's lawyers described her previously, notes the Times.
The settlement arrives just weeks before Andrew was to sit for a deposition, scheduled for March 10.
In January, after a judge allowed the case against him to proceed, the prince was stripped of his military titles and royal charities and was to no longer go by "His Royal Highness" or take on any public duties.