An attorney for the Alabama native filed a motion last day in federal court in Mobile saying Lee had reached an agreement with the Monroe County Heritage Museum in Monroeville.
The settlement notice came days after a judge refused to dismiss the lawsuit, filed last autumn, that said the museum uses Lee's name and the title of her Pulitzer Prize-winning novel without compensating her.
An attorney for Lee did not immediately return a message seeking comment.
A judge would have to approve any settlement.
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Lee, 87, has had a stroke and lives in Monroeville after years of splitting time between the town of 28,000 and New York.
Lee's lone published novel, released in 1960, tells the story of small-town lawyer Atticus Finch, his two children and the struggle against racial prejudice and injustice in the South. Considered a modern classic, the book was turned into a movie of the same name starring Gregory Peck.
The lawsuit said the museum took advantage of Lee's trademarks to sell souvenirs and wrongly used the title of the book as a website address without any compensation. The museum took in more than USD 500,000 in 2012, the lawsuit said. Goforth previously said the museum earned USD 28,566 from merchandise sales that year.
Lee filed the lawsuit after seeking a federal trademark for the title of her book when it is used on clothing. The museum opposed the application, saying souvenir sales were vital to its continued operation.