Former Padres shortstop Khalil Greene and the Padres were to square off in a grievance hearing this month.
But that potentially unpleasant scenario was averted in recent days.
"It's been resolved in a confidential and mutually satisfactory manner," Padres CEO Jeff Moorad said this morning.
Moorad declined further comment.
The Padres were attempting to recoup up to $1. 47 million in salary from Greene for the self-inflicted hand fracture he sustained on July 30, 2008.
Under CEO Sandy Alderson, the Padres stopped paying Greene late last season, not long after he fractured his left hand by swiping a storage chest near the dugout at Petco Park.
The players union intervened, and the Padres paid back the $1.47 million, then filed a grievance.
The club traded Greene to the Cardinals last November, a move that saved $6.5 million in guaranteed salary. The swap also brought reliever Luke Gregerson, who has a 2.92 ERA for the Padres in 44 games. His salary is about $400,000.
Greene twice was sent to the minor leagues this year, each time after being put on the disabled list because of an anxiety disorder. For the Cardinals, he is batting .206 in 162 at-bats. He has seven errors in 29 games at shortstop.