Algeria has accepted US$500,000 in compensation over the friendly match which was cancelled when Cameroon's international players went on strike.
The Desert Foxes had initially asked for US$1m but the two sides have now come to an amicable resolution.
Cameroon's players refused to travel for the match in a row over the late payment of appearance fees.
Algeria demanded payment after selling tickets and broadcast rights for the game before it was cancelled.
Cameroon's squad had been in Morocco playing a friendly tournament when the row broke out.
They refused to travel to Algeria for the subsequent game - an action which led to a 15 match sanction for the captain of the national side, Samuel Eto'o.
"The Algerian Football Federation (FAF) has accepted 500,000 dollars as damages and interest following the refusal of the Lions to go to Algeria," Thobi Roko Sidiki, the Secretary-General of the Cameroon federation Fecafoot said.
Algeria coach Vahid Halihodzic had expressed his anger at what happened, saying "it was a big scandal from a great football nation".