A police pay-out to the daughter of investigative journalist Nicky Hager is a huge relief to her and recognises the search of her bedroom and belongings was invasive and wrong.
She was the only one at home when his house was searched in October 2014 as part of an investigation into the sources for his book Dirty Politics.
Last year the High Court found the officers' actions were "fundamentally unlawful".
Mr Hager's lawyer Felix Geiringer said his client is relieved the case won't have to go to court.
He won't reveal the size of the settlement but said it showed the police had accepted how distressing the 10-hour search was to the young woman.
"If you imagine, somebody went through your bedroom and all of your belongings, looking for something they didn't really know what it was they were looking for. You can imagine how invasive that would be."
Officers also seized and cloned her phone and laptop, keeping the laptop for more than four months afterward.
Police had agreed to pay her damages and costs, and destroy all copies of her information taken and copied during the raid, Mr Geiringer said.
"On that basis, [she] has agreed to discontinue her proceedings against the police."
Claims brought by Mr Hager against police in relation to the raid were ongoing, Mr Geiringer said.