Ramon Valdivia has settled his wrongful termination lawsuit with the New York Yankees, clearing the former scout to petition Major League Baseball for his reinstatement, according to a source with knowledge of the situation. Valdivia, the former Dominican scouting director for the Yankees, was fired in August after New York prospect Kelvin De Leon claimed Valdivia and former Yankees Latin American scouting director Carlos Rios had taken $100,000 of his signing bonus. Additionally, Valdivia received an indefinite suspension from MLB. Rios was also fired.

As part of the settlement by a Dominican court, the Yankees will send a letter to MLB saying they will not object to Valdivia's reinstatement. Also, Valdivia will receive a cash settlement believed to be in the $50,000-70,000 range.