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The phrase "a settlement that is" is correct and usable in written English.
It can be used when describing a specific type of settlement or condition related to a settlement.
Example: "The report detailed a settlement that is beneficial for both parties involved in the dispute."
Alternatives: "an agreement that is" or "a resolution that is".
Exact(26)
Mr Cameron argued Scotland needed extra devolution as part of a "settlement that is fair for the whole of the United Kingdom".
In fact, there is no reason to think future negotiations will end up with a settlement that is very different from this one.
Google got the green light to issue nonvoting shares after the settlement of a lawsuit challenging the maneuver, a settlement that is awaiting final judicial approval.
This is hardly the only time in recent months that a settlement that is publicized as righting a wrong instead hands money to people who were never victimized.
Mr. Schneiderman, who became the attorney general of New York after the scandal broke, has rightly refused to go along with a settlement that is not based on a thorough investigation, and has ordered investigations of his own.
According to Afghan tribal custom, a jirga is supposed to bring the two warring parties together on neutral ground while selected elders negotiate and then guarantee a settlement that is binding on all parties.
Similar(31)
"Any portion of a settlement that's intended to be a penalty should include language clarifying it isn't deductible.
In his ruling Monday, the judge said he couldn't approve a settlement that was based on "mere allegations".
The rules are included in a settlement that was approved by a Federal District Court judge on Thursday, concluding a six-year-old class-action lawsuit.
In 1535 he founded a settlement that was later moved to a more healthful site and developed into the modern Guayaquil.
"But Kfar Darom is a settlement that was established back in 1946, and it stood firm and it delayed the Egyptian Army for several critical days in 1948..
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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