CNET is reporting the deal resolves class action litigation linked to the iPhone's antenna.
Apple is agreeing to give everyone in the US who bought an iPhone 4 $15 or a free phone case in the settlement.
An attorney representing the plaintiffs says the settlement is open to over 20 million Apple customers.
An Apple attorney calls the deal "fair" and "reasonable." The late Apple co-founder Steve Jobs held a press conference when the issue started in 2010.
He offered all iPhone 4 owners a free case or a full refund.
The iPhone case is supposed to help correct the problem.