The sides wound up settling for $1.588 million, according to sources.
Rice was seeking back pay from his $3.529 million base salary for the 2014 season. The settlement was agreed upon in advance of a hearing before NFL system arbitrator Shyam Das.
Rice's $35 million contract was terminated in September after a graphic video surfaced of his domestic violence incident. He filed the grievance in October.
Rice was paid a total of $26.588 million on the contract that was signed in July 2012, which included a $15 million signing bonus.
The Ravens were holding $1.44 million against the salary cap since the grievance was filed. The Ravens are $4.604 million under the NFL salary cap limit of $143.28 million heading into free agency on March 10 and the start of the 2015 league year.
After settling in January, the Ravens released a statement saying, “The Ravens agreed to resolve the grievance with Ray Rice. It’s time to turn the page, and we’re moving forward. ... We wish Janay and Ray Rice the best.”
Rice, a three-time Pro Bowl selection, was reinstated from an indefinite league suspension in November. He hasn't worked out for or visited an NFL team, but he told The Baltimore Sun during an interview that he's working out regularly and hoping for a second chance.