The Brazil international had claimed he was owed €43.6million in unpaid bonuses by LaLiga giant Barca.
Neymar insisted he was due the huge sum as a loyalty bonus, having signed a new five-year contract with the Catalan club in 2016.
A judge ruled in Barca's favour in June 2020, ordering Neymar to pay his former employers €6.7m.
Barca revealed the case is now closed.
"FC Barcelona announces that it has extrajudicially and closed amicably different labour and civil litigations that had opened with the Brazilian player Neymar da Silva Santos Junior," a Barcelona statement read.
"Thus, the club and the player have signed a transactional agreement to end legal proceedings that were pending between both parties: three claims in the labour jurisdiction and one civil proceeding."
Neymar joined PSG for a world record fee of €222m in August 2017.