The city had faced a July 31 deadline to reach agreement with the Justice Department or face a federal lawsuit accusing the police department of violating citizens' civil rights.
The settlement in Seattle follows voluntary police reform pacts in recent years with several other big cities, including Los Angeles, Cincinnati and Pittsburgh. Several other large municipal police forces remain under federal review.
On Tuesday, U.S. Attorney General Eric Holder placed the New Orleans Police Department, accused of widespread abuses, under the scrutiny of a federal monitor for at least four years.
The Justice Department concluded in a report presented in December that Seattle officers displayed a pattern of using excessive force between 2009 and April 2011.
The investigation was launched in response to a request by the American Civil Liberties Union that was sparked by a series of high-profile cases in which Seattle police used force against minorities.
(Reporting by Laura L. Myers; Writing by Steve Gorman; Editing by Paul Simao)
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