The U.S. government will pay Alan Gross, an American contractor who was released last week after five years in a Cuban prison, $3.2 million as part of a settlement with his employer, officials said Tuesday according to CNN.

The U.S. Agency for International Development announced it reached the settlement with the Maryland-based company Development Alternatives Inc., which Gross was working for in 2009 as part of a USAID-funded program when he was arrested for allegedly trying to overthrow the Cuban government.

"Our understanding is that the money will go to Alan Gross as part of an agreement between the two parties," USAID, which handles foreign aid, announced.

DAI had originally sought $7 million from USAID. The settlement states USAID shall issue payment for unanticipated claims under a cost-reimbursement contract, which includes claims related to Gross, the federal agency said.

"The settlement avoids the cost, delay and risks of further proceedings, and does not constitute an admission of liability by either party," USAID said, CNN reported.

Gross was providing cellphones and other technological devices to Cuban Jews in what the U.S. said was an attempt at democracy-building on the island. But the communist government saw it as a threat and sentenced Gross to 15 years in prison.

He was released last week in exchange for the release of three Cuban prisoners from a U.S. federal prison, a landmark deal which restored diplomatic relations between Cuba and the U.S.

In 2012, Gross and his wife Judy filed a $60 million lawsuit against DAI and the U.S. government for gross negligence. The couple settled with DAI for an undisclosed amount.

But a U.S. district court tossed out their claim against the U.S., a decision that was later upheld by an appeals court, Reuters reported. Gross' lawyer said they are planning on requesting the Supreme Court review the case.