The African National Congress (ANC) must now pay the trustees of murdered mining magnate Brett Kebble's estate R250,000 before next week Friday.
An out of court settlement was reached before the matter was due to be heard by the South Gauteng High Court on Friday.
The trustees claimed that Kebble gave the ANC a donation in 2004.
Trustee Hans Klopper confirmed that the R250,000 will be paid back to the estate.
The ANC successfully avoided a full blown court hearing, during which it would have had to explain how Kebble was able to buy influence with political decision makers.
Klopper said while millions was paid by Kebble to the ANC, they are pleased that a settlement could be reached.
"Much more was paid outside of the two-year period but we have abandoned that claim because of the costs involved," said Klopper.
Kebble died in 2005 in an apparent assisted suicide.