In a last-minute settlement before trial, the network agreed to pay $787.5m (£634m) – about half of the $1.6bn initially sought by Dominion.
Dominion argued its business was harmed by Fox spreading false claims the vote had been rigged against Donald Trump.
The deal spares Fox executives such as Rupert Murdoch from having to testify.
The judge in the case is not required to give his approval for the agreement.
Fox News will pay out $787.5M over their election lies. They should also be required to tell their viewers the truth. pic.twitter.com/hhPi1ytYXR
— Robert Reich (@RBReich) April 18, 2023