Renwick Spence pleaded guilty in 2007 to abusing eight male students between 1967 and 1981.
The 84-year-old retired teacher was paroled in 2009.
A class action suit against Renwick and the EMSB was set to go to trial starting this week.
“An agreement in principle has been reached and the trial will not go ahead,” said the schoolboard’s chair Angela Mancini in a statement.
The school board says it can't release details of the settlement before the legal work has been filed in court.