New York City has agreed to pay $4 million to Thabo Sefolosha, a forward with the N.B.A.’s Atlanta Hawks, to settle a federal lawsuit in which he accused five police officers of false arrest and using excessive force during an encounter outside a Manhattan nightclub, the city’s Law Department said on Wednesday.

The settlement ends Mr. Sefolosha’s two-year fight to clear his name and recover damages after he was arrested early on April 8, 2015, along with a teammate at the time, Pero Antic.

“We are glad this matter is resolved,” Mr. Sefolosha’s lawyer, Alex Spiro, said in a statement.

The police officers and the city did not admit any wrongdoing as part of the settlement, Nick Paolucci, a Law Department spokesman, said in a statement.

Mr. Sefolosha’s right fibula was broken when the officers knocked him to the ground and handcuffed him after he left the 1 Oak nightclub in Chelsea. He missed the 2015 playoffs, had surgery and required months of rehabilitation.