However, neither the city nor the police admit any wrongdoing in the settlement, the newspaper reported.
Louisville Mayor Greg Fischer announced the settlement Tuesday alongside attorneys for Breonna Taylor's family.
But Taylor's story remains at the center of a nationwide movement seeking racial justice, police reforms, and reminding people to say her name.
Attorney Lonita Baker said that it was important to the family that police reform be part of any settlement. Cameron, a Republican and the state's first Black attorney general, is considering whether to bring charges against the three white officers involved in Taylor's death.
The family filed a suit over Taylor's death in April and the Courier-Journal reports the settlement the city has agreed to pay will be "substantial".
"What we were able to accomplish today is significant but it is a portion of a single layer", said Baker.
Other changes included the addition of social workers to the police department to respond to some calls, incentives for police officers to live in the communities they serve, additional protocols for monetary seizures by police and increased random drug testing within the police department.
The Los Angeles Sparks' Candace Parker, whose 11-year-old daughter is in the bubble with her, said the settlement money is no consolation for the loss of Taylor's life to Taylor's mother and family. The city council passed "Breonna's Law", which bans no-knock warrants, and the police chief was fired in June following a separate police shooting.
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The officers have not yet faced any criminal charges, though Hankison was sacked for "blindly" firing 10 shots into Taylor's apartment from outside, according to his termination letter.
Police investigators Brett Hankison, Myles Cosgrove and Jonathan Mattingly were individually named in the lawsuit. But in a statement last week, he apparently sought to tamp down on such speculation.
The agreement signals an end to the civil proceedings but not to the criminal investigation, which has yet to lead to any charges, six months after Taylor's death.
Outrage over Taylor's shooting also spread, with high-profile figures like Kamala Harris, the Democratic vice-presidential nominee, calling for a federal investigation. "The news will come from our office and not from unnamed sources".
Kenneth Walker, Taylor's boyfriend, was with her the night of the raid.
The officers said they announced their presence before entering the home. Police were supposed to be executing a warrant for someone located 10 miles away, and when they broke down the door of Taylor's boyfriend's home, he fired a shot that hit an officer in the leg. Police fired back, hitting Taylor five times.
The city requires all officers to wear and use body cameras when serving warrants, according to Louisville NPR member station WFPL. The mayor earlier this year ordered a comprehensive review of the police department by an outside firm.
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