Both parties say in a Wednesday statement that the terms of the settlement are confidential.
Olbermann was fired last March as a host and executive at the left-leaning cable talk network.
Olbermann sued, claiming Current violated his agreement and engaged in shoddy production values. Current's countersuit accused him of breaching his contract, including taking vacation without notice.
The at-times volatile host came to Current in June 2011 after a stormy eight-year stint at MSNBC, which he abruptly left that January.
Current, co-founded by Al Gore, is now being acquired for $500 million by Al-Jazeera, which is owned by the government of Qatar.
