SCA Promotions first demanded repayment of the money in 2013 when Armstrong was stripped of his seven Tour de France titles after he confessed to taking performance-enhancing drugs during his career.
The Texas-based company contributed to the case against Armstrong by pursuing allegations of doping in 2005 when it initially refused to pay out a bonus for his win in the 2004 Tour de France.
Armstrong had been ordered to pay back the $10m to the company by an arbitration panel in February, for lying under oath in a previous case between the two parties.
The exact sum of the Texan's settlement has not been revealed, but it will add to an already costly legal bill since he admitted to doping on the Oprah Winfrey show in 2013.
The US federal government is seeking repayment of more than $30m paid by the US Postal Service to sponsor his teams during his career.
I'm pleased to have this matter behind me and I look forward to moving on. I do wish to apologise to SCA...for any misconduct on my part.