Maninder Singh was born under bed sheets at St Mary's Hospital in Manchester in October 2008, while his mother was numb from an epidural.
The delay in resuscitating him led to his further decline and death six months later, a coroner found.
The hospital apologised in April and has reached an out of court settlement with the family.
Bosses have agreed to compensate father Kamaljeet Singh with an undisclosed sum for the additional financial strain placed on the family as he spent the six months leading to his son's death by his side, BBC reported yesterday.
"We lost a much-loved son under horrific circumstances. We have fought so hard and we waited so long to receive an apology and an admission that more could have been done to save him," Singh said.
"No amount of money in the world could ever replace what we have lost, but we are now finally in position to move forward with our lives. We feel that in some small way justice has been done."
Solicitors representing the family have questioned why it took the hospital four years to admit fault and apologise.
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