HP filed a lawsuit against Mark Hurd after Oracle appointed him to its board and gave him the role of co-president in charge of sales, marketing and support.
The Oracle appointment came within a month of the chief executive's resignation from HP after an internal investigation alleged Mark Hurd had made inaccurate expense claims and concealed a relationship with events contractor Jodie Fisher.
HP was seeking monetary damages, assurances that HP's secrets were safe, and a court injunction to prevent Hurd taking up his new role immediately.
The company claimed Hurd's position at Oracle would lead inevitably to him divulging confidential information.
But now HP and Oracle have issued a joint statement announcing the resolution of the litigation regarding Hurd, according to the Financial Times.
The companies, which share 140,000 customers, said the terms of the settlement were confidential, but Hurd would protect HP's secrets while fulfilling his role at Oracle.
HP said it was modifying the terms of Hurd's separation agreement as part of the legal resolution.
The company said Hurd had agreed to waive his rights to remaining compensation due to him in stock.
Despite their shared customers and long-term partnership, HP and Oracle have become increasingly competitive through a series of strategic acquisitions.
This story was first published by Computer Weekly