The notice of agreement was filed in Delaware's District Court, where Pfizer brought the case in 2002

The district court put the case on hold last year, pending a review of the Viagra patent, held by Pfizer at the U.S. Patent and Trademark Office.

Last month, the office partially rejected the patent because it works in a way similar to the Chinese herb Yin Yang Huo, which is sold on websites under the name Horny Goat Weed.

"We've reached an agreement with Eli Lilly with respect to the litigation, but terms of the agreement are confidential," a Pfizer spokesman said. Officials at Lilly could not immediately be reached for comment.

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