Marta Almli did not disclose the terms of the agreement, which she said must be signed by a judge in the coming weeks. The judge's approval was expected to be a formality.
The agreement, Ms Almli said, also settles a lawsuit Mr Jackson filed against Ms Rowe in 2004 claiming that she violated a confidentiality agreement.
"There is a settlement of all of the disputes between the parties," Ms Almli said. "It's a done deal."
Mr Jackson's lawyer, Michael Abrams, confirmed that the agreement had been reached. He said Mr Jackson was not in Los Angeles but had approved the deal.
"He wasn't in LA when we resolved it but that didn't prevent us from talking about it with him and having him sign it," Mr Abrams said.
Mr Jackson and Ms Rowe, who met while she was working for his dermatologist, were married in 1996 and had two children, Michael Junior and Paris, before splitting in 1999.
The couple never lived together.
In 2001, Ms Rowe gave up her parental rights but filed for custody after Jackson's 2003 arrest on child molestation charges, citing in part his association with the Nation of Islam.
Prosecutors called Ms Rowe as a witness in Mr Jackson's trial last year, but she testified about Jackson in glowing terms.
Mr Jackson was acquitted of all charges in June of 2005.