The settlement includes an agreement to end all litigation, as well as agreements around global patent licenses and chipset supply.
The patent license agreement spans six years, and also includes an option to extend the license for a further two years.
Apple and Qualcomm have been entrenched in a battle over royalties for years after Qualcomm claimed that companies must licence its patents before using them.
Apple filed its first suit against Qualcomm back in January 2017, while the Federal Trade Commission (FTC) filed a separate lawsuit soon afterwards.
In response, Qualcomm has sued Apple for a variety of patent infringements over the years, and recently won one of these cases in a Chinese court.
Apple said in a statement that as part of the settlement, it will be paying Qualcomm an undisclosed amount of money.