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The phrase "a potential settlement" is correct and usable in written English.
It can be used when discussing the possibility of reaching an agreement or resolution in a dispute or negotiation.
Example: "The parties are currently in discussions regarding a potential settlement to avoid further litigation."
Alternatives: "a possible agreement" or "a prospective resolution."
Exact(44)
The directors then reached out to Mr. Levinsohn about potentially taking the top job and to Mr. Loeb about a potential settlement of the proxy fight.
A potential settlement had been under discussion for several days.
It's important for both sides to work hard to create the conditions of a potential settlement.
The company has set aside $500 million for a potential settlement of the criminal probe.
Under that scenario, if Starr won the case, AIG would not receive any damages or portion of a potential settlement.
The Mets might think that they could afford to pay a potential settlement in the neighborhood of $165 million.
Similar(16)
Use JPMorgan's base case, however, and the cost would drop to a mere $4 billion before accounting for any potential settlement costs.
The decision may also make it more likely that banks will have an advantage in potential settlement talks.
In 1584 the Englishman Sir Walter Raleigh received a grant from Queen Elizabeth I to claim land in North America, and he sent out an exploratory expedition that returned with a report optimistic for potential settlement.
I was pleased to see that O'Connell has pledged to donate a portion of his potential settlement to legal-reform efforts.
Israel should designate a certain number of potential settlement sites in the West Bank near the pre-1967 border, some bigger and some smaller.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com