The deal was announced by a California law firm representing the 332 victims of Nassar, who assaulted women and girls under the guise of medical treatment.
The deal does not include any non-disclosure or confidentiality agreements, according to a statement from lawyers and the university.
It does not address allegations against other groups for which Nassar worked including USA Gymnastics, the US Olympic Committee, or the owners of the Texas facility where gymnasts trained.
According to the lawyers, $NZ615 million will be paid to the claimants, and another $NZ110 would be set aside for any future allegations against Nassar and the university.
The president of USA Gymnastics, which oversees the US Olympic team, as well as the entire board of directors resigned after at least 156 women came forward to testify against the disgraced ex-doctor.
Earlier this year, the university's president and director of athletics resigned amid claims that school officials had been told of allegations against Nassar years ago but failed to act.
Former president Lou Anna Simon denied claims of a university cover-up as she stepped down on the same day that Nassar was sentenced for his crimes.
Nassar is currently being held in federal jail and will likely remain there for the rest of his life.
He is serving a 60-year sentence for child pornography. If he is ever released he faces up to 175 years in state jail for sexual assault.