It is not known how the money will be split between Kaepernick and Reid or how much they will get after legal fees.
A NFL spokesperson declined to comment to the Wall Street Journal and an attorney for Kaepernick and Reed said they are respecting the confidentiality agreement.
Kaepernick and Reid withdrew their collusion cases against the league on Feb. 15. The resolution of the matter was subject to a confidentiality agreement, according to a joint statement from the NFL and Kaepernick's lawyers Mark Geragos and Ben Meiselas.
According to Yahoo Sports's Charles Robinson, the publication was told Kaepernick would only withdraw his case if "a lucrative settlement" was reached between him and the league.
Kaepernick first filed a grievance against the NFL in October 2017, claiming the NFL tried to keep him from playing after he chose to kneel during the national anthem. The quarterback opted out of his contract with the 49ers in March of the same year and was not picked up later in free agency. Kaepernick began kneeling during the 2016 season to protest racial inequality and police brutality, with Reid and several other NFL players eventually joining him.
Reid, a former teammate of Kaepernick's, was also a member of the grievance and signed a deal with the Panthers in free agency in 2018.
Kaepernick won the summary judgement phase of his case in August 2018, and the final hearing was set to go before arbitrator Stephen Burbank in February.