Merriman was arrested by sheriff's deputies Sept. 6 after Tequila accused him of battery and false imprisonment at his suburban San Diego home.
Prosecutors declined to charge Merriman but Tequila, whose real name is Tila Nguyen, filed a lawsuit that alleged the linebacker choked her. Merriman sued for international interference with a contract, claiming the controversy delayed a T-shirt business he was negotiating with Wal-Mart Stores Inc.
Tequila attorney Cyrus Nownejad said Tuesday he won't disclose terms of the settlement. Neither will Merriman attorney Andrew Skale, who said the dispute was resolved amicably.
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