Police previously justified the shooting.
Minneapolis has reached a tentative wrongful death settlement with the family of a 22-year-old African American man who was shot and killed by police seven years ago, according to a public filing.
A settlement conference was held Tuesday before Magistrate Judge David Schultz, said Michael Padden, the family's attorney.
He would not disclose terms of the agreement, which still requires approval by the Minneapolis City Council.
The death of Terrence Franklin in 2013 sparked outrage, as protesters and civil rights activists challenged the official version of events.
Police said Franklin was a burglary suspect, killed by pursuing officers in a basement after he grabbed an MP5 gun and shot and injured two of them — a contention his attorneys vehemently denied. A grand jury said there was not enough evidence to prosecute officers.
The victim's father, Walter Louis Franklin II, however said his son was shot after he had already surrendered. He had multiple gunshot woods.
There was no immediate comment from the Minneapolis police department.