The presenter alleged she was lined up to replace Natasha Kaplinsky while the latter was on maternity leave, but was sidelined because she was too old.
A spokeswoman from Five said: "The proceedings brought by Selina Scott against Five under new age discrimination laws have been settled.Five has apologised for the offence it caused Ms Scott.'
But Five refused to confirm the amount of the settlement, saying it was "confidential".
Commenting on the settlement, Catharine Pusey, director of The Employer's Forum on Age, said: "High-profile cases like that of Selina Scott will make more people realise they should not be judged on their age but on their skills and their suitability for the role.
"Employers cannot afford to bury their heads in the sand hoping this issue will just go away. They really must ensure they comply with the 2006 regulations not only to avoid costly tribunals but also to harness the business advantages of an age diverse workforce."
