Clarkson was fired in March 2015 after hitting Oisin Tymon and calling him a “lazy Irish (expletive)” during a dispute at the end of a day’s filming.
Tymon sued for personal injury and racial discrimination.
His law firm, Slater & Gordon, said Wednesday that the suit had been settled. In a statement, Clarkson said: “I would like to say sorry, once again, to Oisin Tymon for the incident and its regrettable aftermath.”
Financial details of the settlement were not disclosed, although the BBC reported it was more than 100,000 pounds ($140,000), to which both Clarkson and the BBC contributed.