A Manhattan judge filed a notice of the settlement last week.
The model had sued Szul Jewelry Inc. for $5 million. The 37-year-old said she didn't consent to use of her image simulating an orgasm.
The video attracted more than 700,000 hits before being removed in January.
A statement from both parties says the settlement terms are confidential.
A lawyer for the model says his client is "pleased," and Szul says it was a "miscommunication between parties."
The model was allowed to remain anonymous in the lawsuit. She is a married graduate student in elementary education.