The Diocese of Santa Rosa said in a statement it had given 'a significant settlement to a victim of the deceased Fr. Ted Oswald, who died in 2010'.
The settlement is thought to be one of the largest paid to a single victim of clergy sexual abuse in the United States.
Bishop Robert F. Vasa, who has led the diocese since 2011 and inherited the issue, said: "The settlement involves a lot of money.
"It does not, however, restore peace and tranquility to this child of God. I pray this can come in time.
"I humbly apologize to this young person on behalf of the Church that failed to protect them.
"I also take this occasion to apologize to all victims for the harm done to them.
"This perversity, though prevalent in all parts of society, was allowed to persist in the Church for too long.
"Thus while continuing to be vigilant we must also seek forgiveness. Those who have left the Church because of this scandal must be invited again to believe the Church brings goodness, truth, and the light of Christ's healing presence and mercy."
The money has not been taken from church funds and instead from insurance policies.
The diocese now has no further abuse lawsuits pending.