Julia Rynkiewicz, 25, was suspended from her studies in midwifery and subjected to a four-month fitness-to-practice inquiry because of her role as president of Nottingham Students for Life.
The investigation left Ms Rynkiewicz with the prospect of being expelled from the university.
The Telegraph reports that the university dismissed the case against Ms Rynkiewicz, who then pursued a formal apology from the institution.
University bosses have now reached a settlement with Ms Rynkiewicz and offered an apology.
Responding to the outcome, she said the settlement “demonstrates that the university’s treatment of me was wrong, and while I’m happy to move on, I hope this means that no other student will have to experience what I have”.
“What happened to me risks creating a fear among students to discuss their values and beliefs, but university should be the place where you are invited to do just that.”