Ms Price has also agreed to pay Mr Andre undisclosed compensation, which he will pay into a trust fund for Harvey, and make a contribution to his legal costs, solicitor Mike Brookes told Mr Justice Tugendhat.
Mr Andre had brought forward defamation proceedings over interviews Ms Price gave to Heat magazine in October 2009 and on The Graham Norton Show the same month.
Neither Mr Andre, who is in Australia after appearing in I'm A Celebrity...Get Me Out Of Here!, nor Ms Price were at London's High Court for the brief hearing.
Mr Brookes said: "Mr Andre brought these proceedings because his relationship with his children and his reputation are important to him, which Ms Price understands.
"Mr Andre and Ms Price are pleased that they have reached a compromise to the proceedings and they now wish to put this matter behind them in the interests of their children."
The couple, who divorced in October 2009, have a son and a daughter together - Junior and Princess Tiaamii - while Harvey is from a previous relationship of Ms Price's.
Her solicitor, Keith Ashby, told the judge: "I confirm what has been said by Mr Brookes, that Ms Price regrets making the comments she made and she is very happy to confirm - as she has said publicly before - that Mr Andre has been a good father to Harvey and has demonstrated his love for him on many occasions.
"Ms Price is pleased that she and Mr Andre have been able to put this litigation behind them in the interests of their children."