Attorneys representing 332 people have reached the settlement following lawsuits against the University.

Nassar, who also worked for USA Gymnastics is currently serving a jail term of up to 175 years on multiple accounts of sexual abuse.

Those who have accused him include Olympic athletes on the American team, with dozens publicly testifying against Nassar at his court hearings.

The University, USA Gymnastics and the United States Olympic Committee have all faced criticism after Nassar was able to prey on his victims for so long while seemingly going undetected.

There have also been questions about who knew what, and when.

Out of the settlement, $425 million (£314 milion/€360 million) will be paid to current claimants.

The remainder will be set aside in a trust fund for any future victims of Nassar who come forward.

There will be no confidentiality agreements or non-disclosure agreements attached to the settlement.

Survivors' attorney John Manly said: "This historic settlement came about through the bravery of more than 300 women and girls who had the courage to stand up and refuse to be silenced. 

"We appreciate the diligent efforts of Mick Grewal and the survivors' attorneys throughout the nation who worked to obtain this measure of justice and healing. 

"We also thank the mediator and all who participated in crafting this settlement. 

"It is the sincere hope of all of the survivors that the legacy of this settlement will be far reaching institutional reform that will end the threat of sexual assault in sports, schools and throughout our society."

Following the scandal, the International Gymnastics Federation has announced plans for a new Ethics Foundation with an independent safeguarding section.

"Michigan State is pleased that we have been able to agree in principle on a settlement that is fair to the survivors of Nassar's crimes," said Robert Young, special counsel to MSU. 

"We appreciate the hard work both sides put into the mediation, and the efforts of the mediator, which achieved a result that is responsible and equitable."