The German company added that no money changed hands in the agreement.
Adidas and West had been embroiled in multiple lawsuits for the past two years, since the company ended a partnership with the rapper over antisemitic comments he made.
"There isn't any more open issues, and there is no... money going either way, and we both move on," CEO Bjorn Gulden told reporters on a conference call, declining to give further details of the deal.
"There were tensions on many issues, and... when you put the claims on the right side and you put the claims on the left side, both parties said we don't need to fight anymore and withdrew all the claims," he added.
Ending the partnership has left Adidas with Yeezy stock worth around STG840 million ($A1.7 billion), with the sports brand selling product in batches and donating the proceeds to NGOs, including its own recently launched anti-discrimination foundation.
The final Yeezy stocks will be sold by the end of 2024, Adidas said.
The decision to move on from the "fight" marks a stark contrast to 2022. At the time, Adidas said it does "not tolerate antisemitism and any other sort of hate speech".
It added: "Ye's recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company's values of diversity and inclusion, mutual respect and fairness."
Adidas has been left with Yeezy stock worth around $A1.7 billion. (AP PHOTO)
Adidas and West began collaborating in 2014, which led to a hugely successful sportswear brand.
Demand for Yeezy products did not let up even after the furore, with many Yeezy trainers doing well in the resale market and selling for hundreds - and sometimes thousands - of pounds.
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