It is unclear if the settlement would force Filner, who is facing a recall effort after a number of women alleged sexual harassment, to step down from his office. According to reports, the mediation between Filner, Goldsmith, and attorney Gloria Allred included discussions of the mayor's possible resignation.

Filner, a former congressman, has been in trouble since the accusations of sexual harassment began piling up earlier this summer. On Wednesday an 18th accuser, businesswoman Dianne York, came forward, saying Filner touched her buttocks during a photo-op three months ago.

Filner attended a two-week therapy program for sex addiction in late July and has been defiant in the face of calls from other Democrats to resign.

He has acknowledged inappropriate behavior but denies committing sexual harassment.