A sexual harassment lawsuit against University of North Carolina women's soccer coach Anson Dorrance has been settled, with the university agreeing to pay former player Melissa Jennings $385,000 and Dorrance issuing an apology to all his players for inappropriate discussions about sex.

The deal also requires the university to conduct a comprehensive review of its sexual harassment policies and procedures, according to a copy of the settlement obtained by The News & Observer. The settlement was approved last week by members of the UNC Board of Governors.

It was the second and final monetary settlement in the protracted lawsuit, which has been an embarrassing and expensive chapter for the university and its star soccer coach. In 2004, the other plaintiff, Debbie Keller -- a two-time national player of the year -- settled out of court for $70,000 and a requirement that Dorrance attend sensitivity training for eight years.

The lawsuit has had many twists and turns since it was filed a decade ago by the two former players who originally sought $12 million in damages. The university and the state fought the suit all the way to the U.S. Supreme Court, which last year declined to hear it. A trial had been set for April in federal court.

In a statement today, Dorrance said: "Since August 1998, I have looked forward to clearing my name in court. That is still true today. I understand, though, that after nine years of litigation, it is best for the University, our soccer program and all of us involved in this case for it to end here."

With the settlement, the university will avoid a bruising public trial that could have further hurt its reputation. Some had predicted an outcome that would set important precedents about the relationship between coaches and players.

UNC officials said the $385,000 would compensate Jennings for most of her legal fees during the duration of the suit.

In the agreement, Jennings, who was recruited to the university to play goalie, stipulates that neither Dorrance nor his staff made a pass at her or pursued a sexual relationship with her. But they made multiple and overt sexual comments that were uninvited and offensive, she wrote. "As a result, I personally felt extremely uncomfortable," she said in a letter.

Dorrance's apology letter, contained in the settlement, said between August 1996 and June 1998, he participated with his players in group discussions of team members' sexual activities and relationships with men.

"I understand that my participation in those discussions was inappropriate and unacceptable," his letter said. "I apologize to Ms. Jennings and her family, as well as all other members of the soccer team."

Dorrance and the university had long argued that the sexual discussions were merely locker room banter. But last year Judge M. Blane Michael wrote in a majority opinion for the 4th U.S. Circuit Court of Appeals that Dorrance's conduct "went far beyond simple teasing and qualified as sexual harassment."

The settlement provides for a full review and revision of UNC's sexual harassment policies by Nancy Hogshead-Makar, a former Olympic swimmer who is now a Florida Coastal School of Law assistant professor specializing in women's equity in sports. Any revisions are to be done by July 15.

Jennings' father, Craig Jennings, said the suit was never about money. He said UNC now has the opportunity to create a model policy on sexual harassment. "It's really what we worked hard for," he said. "That was very crucial to us."

UNC Athletic Director Dick Baddour said in a statement that that university was happy to move forward and that a trial would have benefitted no one.

"This settlement in no way constitutes an admission of anything beyond what Coach Dorrance has already apologized for," Baddour's statement said.

"He is an outstanding worldwide ambassador for women's sports, amateur athletics and the University of North Carolina. We have heard from a countless number of players who stand firm in their belief in, support of and thanks to Anson and the women's soccer program. Many of our former student-athletes expressed their desire to testify on Anson's behalf and about the positive experiences they had while playing for him. But we just didn't want to subject them to a court proceeding."

Dorrance, 56, created a dynasty with his women's soccer program at UNC, presiding over 19 national titles in 26 years.