"The dispute is settled to the satisfaction of both sides," lawyer Tanja Irion told AFP over the years-long row in which Mosley had sought to stop the search engine from listing online links to the photos.
Irion said Mosley, 75, had commented that "the agreement is confidential... I'm happy and I do not want to jeopardise it".
Google Germany spokesman Klaas Flechsig also told AFP that "I can confirm that we have settled the dispute to the satisfaction of both sides in all countries.
A court in Hamburg, Germany had in January last year ruled that the US technology firm must prevent the pictures being shown on its Germany-based google.De site, two months after a similar ruling in France.
Mosley, who formerly headed the FIA world governing body of motorsport, early this year also launched a court action in Britain to stop Google from showing the pictures.
His lawyers argued that Google was effectively a publisher -- a notion that has been rejected by the company, which argues that its search engine is automated and throws up results based on algorithmic operations.
Mosley's lawyers at the time hailed the verdict as a "milestone for the protection of privacy rights on the Internet", saying it brought "legal certainty in a blatant case of privacy rights violations".
Days after the ruling Mosley told news weekly Spiegel that, while Google was "technically... Brilliant, sensational", the multinational was also "arrogant" and "doing whatever it wants".
Google, based in Mountain View, California, at the time said it would appeal the German court's decision, saying it sent a "disturbing message".
The Hamburg court had been due to rule on Google's appeal on Tuesday next week.
The case was one of a string of legal battles waged by Mosley related to the publication of a video, pictures and a 2008 article published by the Rupert Murdoch-owned British newspaper alleging it was a Nazi-themed orgy.
Mosley successfully took the publisher to court over the Nazi claim, winning 60,000 pounds (73,000 euros, USD 99,500) in damages when the judge ruled there was no Nazi element.
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