The National Basketball Association say they have reached an agreement with the estranged wife of Los Angeles Clippers owner Donald Sterling to sell the team of which she is co-owner.
The deal between the NBA and Shelly Sterling, which is contingent on approval of NBA owners, would avoid a showdown on Wednesday between the owners and Donald Sterling, who has already been banned from the league for life and fined almost $3 million for secretly recorded racist remarks that were widely reported and harshly condemned.
The NBA's set to approve the $US2 billion sale of the Clippers by Shelly Sterling to former Microsoft chief executive officer Steve Ballmer.
Sterling, 80, on Friday sued the NBA and league Commissioner Adam Silver in US District Court in Los Angeles for $US1 billion.
As a result of the settlement, the league canceled its Wednesday hearing and vote to terminate Sterling's ownership.
As part of the deal between Shelly Sterling, the Sterling Family Trust, which owns the Clippers, and the NBA, she agreed not to sue the league.
Donald Sterling has listed the Sterling Family Trust as a plaintiff in his suit against the NBA which alleges breach of contract, antitrust violations and violations for denial of constitutional rights, among other things.