The settlement stems from an October lawsuit filed by Eddie Vincent, 31, regarding claims of abuse by former Chicago-area priest Vincent McCaffrey, said Barbara Blaine, president of Survivors Network of those Abused by Priests.
Three other unidentified Chicago-area men filed lawsuits shortly after Vincent, who grew up in Wheeling but lives in Los Angeles.
The archdiocese released a statement Wednesday expressing sympathy for the victims. According to the statement, the settlement is part of ongoing talks in several sexual abuse claims.
Archdiocese spokesman Jim Dwyer declined to comment further.
One of Vincent's attorneys, Jeff Anderson, praised the archdiocese for agreeing to the settlement.
"The settlement is really a big step forward by the archdiocese in both the area of prevention and healing," Anderson said.
McCaffrey is in federal prison after pleading guilty last year to possessing child pornography. He was sentenced in February to 20 years in prison and has admitted molesting more boys in his parishes than he could remember.
Federal prosecutors charged McCaffrey with pornography because the state's statute of limitations had run out for abuse claims.
McCaffrey was ordained in 1978 and served in the archdiocese until October 1991.