Rice had been seeking from the team $3.5 million in back pay, which was the amount he would've made for the final 15 weeks after serving a two-game NFL suspension. He was released by the Ravens on Sept. 8, a few hours after the in-elevator video surfaced showing the three-time Pro Bowl player knocking out his then-fiance, Janay.
Ravens officials wouldn't confirm a settlement. This move would end the litigation between the Ravens and Rice, who is the franchise's No. 2 all-time rusher.
In November, Rice successfully won his appeal to overturn an indefinite ban from the NFL. He wasn't signed by any team and remains a free agent.
Pro Football Talk reported on the settlement earlier Thursday.
Ravens And Rice Settle, Avoid Grievance Hearing
ESPN Ravens reporter Jamison Hensley discusses the settlement reached that has formally severed ties between the Baltimore Ravens and Ray Rice, as well as whether there will be a market for the running back's services next season.