"Disclosure of the terms of the settlement agreement could jeopardize the safety of individuals involved in this matter, whether as witnesses, parties, or investigators", Webber's ruling continued.
Gray speaks at a 2015 news conference as Michael Brown's parents, Lesley McSpadden, second from left, and Michael Brown Sr., right, listen along with attorney Benjamin L. Crump, left.
The details of the settlement are considered a closed record and will not be released to the public.
Brown's parents filed the lawsuit back in May 2015, claiming that a police culture of pervasive hostility toward black Americans led to the death of their 18-year-old son.
Brown's death touched off a series of riots in Ferguson that spread across the United States, renewing calls to stop into violent policing practices and improve strained racial relations in the country.
Wilson's grand jury testimony also characterized Brown as subhuman or animal-like - evidence that his use of force was racially motivated and part of a larger pattern of bias against black people within the police department, their complaint added.
The St. Louis Post-Dispatch reported that the settlement may be for less than $3 million which is the city of Ferguson's insurance limit.
Wilson said he shot Brown several times after Brown, having started to flee, turned and charged the officer. Soon the confrontation escalated, and Wilson says Brown reached into the auto, with the two men wrestling over a gun.
A Justice Department investigation into Ferguson's law enforcement system following the shooting exposed police and courts routinely violated black residents' civil rights, and culminated in a consent decree between the city and the DOJ.
According to a Hollywood publication, Warner Bros.is developing a movie about the police shooting of Michael Brown in Ferguson.