ARN Media revealed it would pay Sandilands $12 million in an ASX announcement published on Wednesday.
He will also receive $1.5 million worth of advertising services on the radio network's partner platforms, while ARN will be given a 19.9 per cent contribution from any of his new ventures for up to three years.
Though the former KIIS FM radio host has said he intends to pursue independent media opportunities, he will not be able to engage with any of ARN's direct competitors for up to nine months from the date of settlement.
"This agreement brings certainty for ARN and resolves the legal dispute," ARN chief executive officer Michael Stephenson said.
"ARN remains focused on executing its strategy, including driving a leaner, more efficient operating model, strengthening its core radio network and continuing to invest in digital capabilities and long-term growth."
Legal proceedings with Sandilands' former co-host Jackie "O" Henderson are ongoing, the radio giant confirmed.
The pair were being sued by their former employer after they lodged separate lawsuits following an on-air spat that led to their show being axed.
Both were seeking the full payout of the remainder of their 10-year, $100 million contracts signed at the end of 2023.
But ARN claimed the controversial duo cost the company key advertising revenue through their sacking.
The highly public bust-up moved into the legal arena after an exchange between the pair in February, when Sandilands accused his co-host of being "off with the fairies".
The on-air comments prompted Henderson to say she could no longer work with her contentious colleague.
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