Hundreds of female US gymnasts who were sexually assaulted by a sports doctor at Michigan State University have reached a multimillion-dollar settlement with the school, the university says.

The settlement, reached between 332 victims of Larry Nassar and Michigan State, will cost the school $US500 million ($A665 million).

It calls for $US425 million to be paid to current claimants and $US75 million to be set aside in a trust fund to protect any future claimants.

There are no confidentiality agreements or non-disclosure agreements attached to the settlement.

Some of the women abused by Nassar are star gymnasts, including US Olympic medallists McKayla Maroney, Aly Raisman, Gabby Douglas and Simone Biles, and have already spoken out.

Lawyer James White, who represents dozens of women named in the suit, told the Detroit Free Press the women now have a chance to begin moving forward.

“I don’t think they can ever be made whole, but this is a step in the right direction,” he said.

The lawsuit claimed the school failed to protect the gymnasts against the abuse. Some gymnasts said nothing was done to stop it after they complained.

Nassar is serving what amounts to a life sentence. His criminal case caused a scandal involving Michigan State University and USA Gymnastics.

The settlement announced on Wednesday does not include USA Gymnastics, the US Olympic Committee and other parties.

The university’s board of trustees said in a statement it is “truly sorry to all the survivors and their families” and said it admired their courage in speaking out.