The settlement was announced at a hearing in State Supreme Court in the Bronx, 8 miles from the site of the alleged assault, the Sofitel hotel in Midtown Manhattan, The New York Times
The hearing was brief and Justice Douglas McKeon said the terms of the deal would not be disclosed, Reuters
Mr. Strauss-Kahn, 63, was held in New York after the hotel maid, Nafissatou Diallo, 33, claimed he assaulted her, but according to BBC News
, prosecutors dropped the charges against the French politician because they doubted Ms. Diallo's credibility.
In spite of the charges against him being dropped, the arrest put Strauss-Kahn's career in shambles, and he quickly resigned
from his post as chief of the IMF.
The case was officially dropped in August, 2011, The New York Times
Before the sexual assault charges brought against him, Strauss-Kahn was considered to be the front-runner
in the 2012 French Presidential election,
replacing incumbent Nicolas Sarkozy.
Ms. Diallo attended Monday's hearing. Dominique Strauss-Kahn, however, was not in court.
The lawyers for each side spoke on their clients' behalves Monday.
"Mrs. Diallo is a strong and courageous woman who never lost faith in our system of justice. With this resolution, she can now move on with her life and we thank everyone for their support and prayers," her lawyer, Kenneth Thompson said, according to Reuters
"On behalf of Mr. Strauss-Kahn, we are pleased to have arrived at a resolution of this matter. We are grateful to Judge McKeon whose patience and forbearance allowed this agreement to be formulated," Strauss-Kahn's attorneys William Taylor and Amit Mehta said in an emailed statement.
Judge McKeon thanked all parties, telling them all they were a "pleasure" to work with, BBC News
According to The New York Times
, Mr. Strauss-Kahn and Ms. Diallo did have sex, and Strauss-Kahn said it was consensual. In a French television interview, however, he admitted the encounter was an "error" and a "moral failure."