The Harry Dunn case has been a source of tension in the UK's relationship with the United States.
The family of Harry Dunn say they have settled a civil lawsuit against the US woman involved in his death.
The British family has sought justice for their teenage son after he died in a vehicle crash in August 2019.
They had filed a civil damages claim lawsuit in the District Court in Alexandria, Virginia, seeking damages.
Harry Dunn died after his motorcycle crashed into a car being driven on the wrong side of the road near a US airbase in central England.
The car’s driver, Anne Sacoolas, left for the United States several weeks later along with her husband, an American intelligence officer at RAF Croughton.
Sacoolas was able to leave Britain after the collision because the US government invoked diplomatic immunity on her behalf.
British authorities filed criminal charges, have sought her extradition, and have repeatedly brought up the case during high-level international talks. The US government had rejected the extradition request, causing an outcry in Britain.
Radd Seiger, the Dunn family’s spokesperson, said on Tuesday that the two sides have reached a "resolution".
“The family feels they can now turn their attention to the criminal case and the long-awaited inquest into Harry’s death which will follow the criminal case,” Seiger said.
The new British Foreign Secretary, Liz Truss, said she would continue to call for Anne Sacoolas to be returned to the UK to face "justice".