Jordan and Heinz-Harald Frentzen have resolved their legal differences triggered by the German driver's sacking by the Formula One team last year.
"We have reached a settlement," Frentzen's manager Monte Field said today.
Irish entrepreneur Eddie Jordan praised the 35-year-old, whom he sacked by fax in August 2001 on the eve of the German Grand Prix, in the latest edition of his team's J magazine as "a very fine driver and a great person".
"He brought us our best results and I am pleased that we have been able to reach an amicable agreement in this situation," said Jordan.
Frentzen, who drove for now-bankrupt Prost and Arrows after being dismissed, is moving to Sauber next season.
He was offered a one-off race, which he declined, with Jordan last season after Italian Giancarlo Fisichella was injured in practice for the French Grand Prix.
The German, who won twice for Jordan in 1999 when he was third in the championship, is still involved in legal action against Arrows for wages he says he is owed.
There is a winding-up petition against Arrows in his name.