Hurd left HP last month following a scandal involving his relationship with a contractor and the alleged falsification of expense reports. He was named co-president of Oracle earlier this month, replacing Charles Phillips.
HP subsequently sued Hurd, saying that he would not be able to perform the new job without violating a confidentiality agreement tied to his severance package. Oracle CEO Larry Ellison called the suit "vindictive" and said it put the two companies' longtime relationship in jeopardy.
The settlement's terms were not disclosed. However, Hurd "will adhere to his obligations to protect HP's confidential information while fulfilling his responsibilities at Oracle," according to a statement.
Hurd received $12.2m in severance when he left HP and an additional tens of millions worth of stock and stock options. It's not clear if the settlement agreement has an impact on his severance package.
In addition, the companies said they plan to continue to build upon their decades-long partnership, Ellison and interim HP CEO Cathie Lesjak said in respective statements.
Despite those niceties, the reality is that Oracle and HP are increasingly in competition with each other. This fact was underscored when both companies announced private cloud products for running Oracle software.
See also: Former HP CEO Hurd joins Oracle