GEORGETOWN, Texas—In a case that drew national attention, a former Texas prosecutor agreed to serve a 10-day jail sentence and to give up practicing law to settle charges that he suppressed evidence in a 1987 murder trial that sent an innocent man to prison for nearly 25 years.

The settlement of civil and criminal charges against Ken Anderson, a former Williamson County prosecutor who later became a state judge, was revealed in a courtroom here Friday in the same central Texas town where Mr. Anderson pushed to convict Michael...