Papers filed in federal court on Wednesday show that a deal was signed on Aug. 27, though its terms were not disclosed.
U.S. Tennis Association spokesman Chris Widmaier said the association is happy the case was resolved and was looking forward to working with Garrison in the future.
Garrison filed her lawsuit in February, saying she was treated unfairly because she was paid a lower salary than Davis Cup coach Patrick McEnroe and was held to higher standards.
Attorneys on both sides did not immediately return messages for comment.
The USTA announced in December 2007 that 2008 would be Garrison's final season at the helm.
Garrison, the first black captain of the U.S. Fed Cup team, replaced Billie Jean King in 2004. As a player, Garrison was the 1990 Wimbledon runner-up, becoming the first black woman since Althea Gibson in 1958 to reach a Grand Slam singles final.
Espanyol name new captainSerena issues new statement, apologizes
