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The phrase "approved a settlement" is correct and usable in written English.
It can be used in legal or financial contexts when referring to the acceptance or agreement of a resolution to a dispute or claim.
Example: "The court approved a settlement between the two parties, allowing them to resolve their differences without further litigation."
Alternatives: "ratified an agreement" or "endorsed a resolution."
Exact(60)
This past June, the City Council approved a settlement of two million dollars.
(Earlier this year, a judge approved a settlement in a lawsuit against the department).
A commission administrative law judge approved a settlement clearing Avista in July.
In 1992, Judge Pollack approved a settlement in that case for more than $1 billion.
A federal judge approved a settlement in a lawsuit that accused the Cincinnati police of harassing blacks for decades.
Earlier this month, the high court in Britain approved a settlement in Mr. Berezovsky's libel suit against Forbes magazine.
His hilltop was totally barren when the Israeli government approved a settlement there in 1986, he said.
Last year, a federal judge approved a settlement in which all seven pleaded guilty to charges of price collusion.
A federal judge on Monday approved a settlement among Holocaust victims, their heirs and an Italian insurer.
The judge approved a settlement in the case, which by my reckoning could net me as much as $74.09 when the money is distributed.
BOSTON — A federal judge on Thursday approved a settlement meant to guarantee alternatives to segregation for mentally ill inmates in Massachusetts prisons.
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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