Evangelista, 46, was seeking $46,000 in monthly child support from Francois-Henri Pinault for their five-year-old son, Augustin.
"Everybody's glad for the sake and the benefit of the child that it's done," Pinault's lawyer, David Aronson told reporters outside Manhattan family court Monday.
The details of the settlement were not immediately clear.
Evangelista reportedly argued she needed the money for expenses including bodyguards and a full-time nanny.
Evangelista is worth as much as $8 million, the Daily News reported.
The billionaire reportedly testified that he spent $100,000 on a watch, but could not remember what he bought his son for his fourth birthday.