Law complained that the magazine had breached his privacy after it published pictures of him and his children on a beach in the Caribbean in January.
Mark Thomson, partner in London law firm Atkins Thomson which acted for Law, said his client and the magazine had reached a settlement without any formal legal action being taken.
In a statement issued this morning, Thomson said Hello! had agreed not to republish the photographs.
In addition, he said Hello! agreed not to publish in the future any photographs of Law or his children in "circumstances in which he has a reasonable expectation of privacy; including...public or private beaches, private sporting events/activities, school events, at or near school or at public or private parks".
The undertaking will last until the children reach the age of 18.