Lawyers reached a deal on Monday, before the Canadian beauty was due to take the stand for a second day.
The terms of the agreement are not known, but François' lawyer, David Aronson told reporters outside the courthouse: "Everybody's glad for the sake and the benefit of the child that it's done."
Linda, 46, had been seeking a monthly sum of $46,000 to cover live-in nannies and security guards for five-year-old Augustin, her son with the luxury goods tycoon.
After court on Monday, the model and her former flame – who is now married to Salma Hayek and father to the actress' four-year-old daughter – were seen talking to each other.
They had barely made eye contact during the trial, which became increasingly more tense.
Lawyers for Linda alleged that François had suggested she "terminate the pregnancy" – something which was strongly denied by the Frenchman's team.
Earlier in the trial, Linda had admitted that there now wasn't "a lot of demand" for her modelling services.
But during the height of her career in the Nineties, as one of the 'Big Six' – along with Claudia Schiffer, Cindy Crawford, Christy Turlington, Kate Moss, Naomi Campbell – she was one of the highest paid ladies on the catwalk.
She famously once declared that the group wouldn't wake up for less than $10,000 a day, and still to this day holds the record number of Vogue Italia covers.