A statement by Hogan's publicist says the terms of the settlement are confidential.
Hogan said in a lawsuit earlier this month that he had consensual sex with his best friend's wife, Heather Clem, six years ago in the Clems' home, but he didn't know he was being videotaped.
The disc jockey, Bubba the Love Sponge Clem, apologised to Hogan on Monday.
Clem also said he's convinced Hogan was unaware he was being filmed.
A lawsuit is pending against the gossip website Gawker, which put excerpts of the video on its site.
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