Foley attorney Harvey Levine says the settlement was reached with Officer Aaron Mansker and his employer, the city of Coronado, on Wednesday before testimony resumed in the week-old civil trial.
Levine says financial terms are confidential.
Foley's suit sought millions of dollars in damages as compensation for lost past and future earnings.
The player was shot in his leg, hip and hand in September 2006 after Mansker followed his car home on suspicion the driver was drunk. Foley pleaded guilty in 2007 to misdemeanor drunken driving.
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