Lance Armstrong has agreed to pay $5 million (£3.5 million/€4 million) to settle a Federal fraud case over claims he defrauded the United States Government during his cycling career when he admitted he was doping.
The American was due to face trial next month after the allegations he was doping when representing the US Post Service-sponsored team.
The Postal Service and his former team-mate Floyd Landis were seeking $100 million (£71 million/€81 million) in damages and the trial was due to begin on May 7.
That has now been cancelled after a deal between Armstrong's lawyers and the US Justice Department.
Mr Armstrong's lawyers and the US Justice Department brokered a deal on Thursday.
"No one is above the law," the US Justice Department's Chad Readler said.
"This settlement demonstrates that those who cheat the Covernment will be held accountable."
The former Tour de France champion, stripped of all seven of his victories achieved between 1999 and 2005, will also pay $1.65 million (£1.17 million/€1.33 million) for the legal costs of Landis, the main whistleblower in the case.
Landis is also to receive $1.1 million (£780,000/€891,000) in compensation.
"I am glad to resolve this case and move forward with my life," Armstrong said in a statement.
"I'm looking forward to devoting myself to the many great things in my life - my five kids, my wife, my podcast, several exciting writing and film projects, my work as a cancer survivor, and my passion for sports and competition.
"There is a lot to look forward to."
Armstrong posted a picture on his official Twitter feed of an arrow with a crook in it and one word "FORWARD".
His lawyer, Elliot Peters, claimed the settlement "ends all litigation against Armstrong related to his 2013 admission that during his career as a cyclist he had used performance enhancing substances".
Armstrong had claimed said the case against him by the US Postal Service was "without merit and unfair".
Landis also claimed he was relieved the case was no longer heading for court.
"I really didn't want to relive it in a courtroom, and I don't think Lance did either, and I don't know that that would have really accomplished anything," he told ESPN.
"Rather than going through that humiliation again, we're better off.
"I mean, it was up to Lance, but I think he probably feels the same way."