Former TV station boss Roger Ailes resigned in July following the allegations
Fox News has reached a reported $20 million settlement with former presenter Gretchen Carlson over claims she was sexually harassed by chairman Roger Ailes.
Ms Carlson alleged in a lawsuit that her old boss threatened to destroy her career if she rejected his advances.
She claimed she was fired from the network after complaining about his behaviour.
Mr Ailes, a long-time Republican adviser, stepped down from his position with Fox News in July, two weeks after the allegations surfaced. He denies any wrongdoing.
The conservative TV station said in a statement that Ms Carlson "exhibited the highest standards of journalism and professionalism" during her time as an anchor.
"We sincerely regret and apologise for the fact that Gretchen was not treated with the respect and dignity that she and all of our colleagues deserve," it said.
"We know Gretchen will be successful in whatever endeavours she chooses in the future."
Fox did not disclose the sum of the settlement, but sources cited by Vanity Fair and the New York Times said it amounted to $20 million.
Ms Carlson, who hosted her own show with the network up until June, said: "I am gratified that 21st Century Fox took decisive action after I filed my complaint.
"I'm ready to move on to the next chapter of my life in which I will redouble my efforts to empower women in the workplace."
She went on to refer to the other women who have accused Mr Ailes of sexual harassment since she filed a lawsuit.
"I want to thank all the brave women who came forward to tell their own stories and the many people across the country who embraced and supported me in their #StandWithGretchen," her statement said.
"All women deserve a dignified and respectful workplace."