American talk show host Oprah Winfrey and Nomvuyo Mzamane, the South African teacher who previously headed Winfrey's school for girls near Johannesburg, have settled a lawsuit out of court.

Mzamane had sued Winfrey for defamation after being fired in the wake of allegations of physical and sexual abuse at the Oprah Winfrey Leadership Academy for Girls in 2007.

The defamation action was scheduled to be heard in Philadelphia next week after a judge last week refused an application to dismiss the case.

A statement issued by lawyers for the parties on Tuesday did not say whether the settlement included financial compensation for Mzamane.

The agreed statement read: "The two parties met woman to woman without their lawyers and are happy that they could resolve this dispute peacefully to their mutual satisfaction.

"Ms. Winfrey testified in her deposition that she did not intend the implications placed on her words by the plaintiff.

"Ms. Mzamane testified in her deposition that she has no evidence that Ms. Winfrey knowingly made a false statement about her or entertained serious doubt about the truth of what she said.

"We are pleased both parties have reached a conclusion."