Latifa Bouabdillah, 33, won an employment tribunal claim after she was dismissed by Commerzbank AG last June following the publication of a press report about her claim against Deutsche Bank.
A two-day remedy hearing at London Central Employment Tribunal had been scheduled but a settlement was reached after four-and a-half hours of private negotiations.
Neither party would comment further.
Ms Bouabdillah left the hearing without making a comment.
She had been accused of a "breakdown of trust" for failing to fully disclose details of the case when she applied for the Commerzbank job, as well as exposing the bank to reputational damage.
The employment tribunal ruling earlier this year upheld Ms Bouabdillah's claim for victimisation and criticised the bank's "extreme reaction" to the press coverage.
A further claim for sex discrimination against Commerzbank was dismissed by the tribunal.
Ms Bouabdillah quit as vice-president of Deutsche Bank in November 2011 after submitting a tribunal claim for sex discrimination and equal pay.
However she was sacked in June when a Bloomberg report was published about her legal action against Deutsche Bank.
The tribunal ruled that Commerzbank was "uncomfortable" with the coverage and "decided not to continue with the relationship because this was not the sort of person they wanted to employ".