The agreement means that Armstrong will not have to give sworn testimony in the case launched by Nebraska-based Acceptance Insurance earlier this year after he admitted using banned performance-enhancing drugs during his career.

Armstrong had been due to give a deposition in Austin today.

The Texan had admitted on the Oprah Winfrey Network in January that he used drugs when he won all seven of his Tour de France wins but he has so far not provided sworn testimony that he did so, refusing to do so when asked too by the United States Anti-Doping Agency (USADA) 

They banned him for life and stripped him of all seven of his Tour de France titles after they found him guilty despite him refusing to cooperate in their investigation. 

It is the second agreement Armstrong has reached with someone who is suing him.

In August he and The Sunday Times in London reached a "mutually acceptable final resolution" after they had launched a £1 million ($1.6 million/€1.1 million) legal action against him.

In 2006 they had been forced to pay Armstrong £300,000 ($467,000/€350,000) to settle a libel case he had brought against them after they accused him of using banned performance-enhancing drugs.

Lance Armstrong was fêted by United States President Bill Clinton at The White House following his victory in the 1999 Tour de France, his first of his seven consecutive wins in the world's most famous cycle race @Getty Images

But he is still currently facing several lawsuits, including a similar $12 million (£8 million/€9 million) claim over Tour de France bonuses from Dallas-based SCA Promotions.

Armstrong's legal team are currently trying to get their claim thrown out.

He had won a previous case against the company, which had initially refused to pay out bonuses for his Tour wins as it believed they were achieved through doping.

Armstrong's legal team claimed that the specifics of the original contract plus the wording of the agreement signed after the previous court case mean that SCA Promotions cannot now overturn that decision.

Potentially the most serious lawsuit Armstrong faces is from the United States Government, who have launched a Federal whistleblower case in his association with former team-mate Floyd Landis over his team's previous US Postal Service sponsorship that could lead to fines exceeding $100 million (£62 million/€74 million).

Contact the writer of this story at [email protected]


Related stories
August 2013: Disgraced Armstrong reaches confidential compensation settlement with Sunday Times
April 2013: US Government file papers in Armstrong lawsuit
April 2013: Armstrong sells multi-million dollar Austin home
February 2013: Lance Armstrong being sued by US Government
February 2013: Armstrong refuses to cooperate with doping investigation because he fears consequences, claims USADA chief