The apology is part of a settlement in three lawsuits filed by Omar Elgammal and Danial Velshi, which were being tried together.
The settlement also calls for the Toronto French School to send a letter to parents, staff and alumni saying the pair have been accepted in the school community.
The remaining terms of the settlement are not being disclosed.
Elgammal and Velshi — both now 20 — alleged they were publicly blamed by administrators for a fight with a student from another school.
Elgammal and Velshi claimed the fight broke out on Oct. 28, 2008, over racial slurs the other teen used to describe them and their relatives.
They alleged school officials — including headmaster John Godfrey, a former Liberal MP, and principal Heidi Gollert —
denounced the pair at a school assembly and in emails to parents and alumni.
Elgammal and Velshi were suspended from school and charged with assault, but the charges have since been withdrawn.