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Neither company would reveal details of the expected settlement.
The case dates back to 1999 and revolves around a disputed payment within a 10-year, $3.2bn (£2bn) outsourcing contract. The contract was for the servicing of laptops used by Xerox employees.
In 1999, EDS filed a lawsuit in the US against Xerox and called for Xerox to pay for "certain EDS infrastructure services". EDS refused to comment further on the legal action.
At the time of the action Xerox claimed that its actions were perfectly defensible. The row with EDS erupted after Xerox decided to take responsibility for its laptops in-house, a Xerox spokesman claimed.
Despite the lawsuit, EDS has continued to supply other parts of the outsourcing contract, according to Xerox.