Ben Haim was frozen out at Fratton Park last season following a loan spell at West Ham, claiming Pompey owed him £1.4million.
His case was set to go to a Football League hearing this month but Pompey have instead come to an agreement with Ben Haim - meaning boss Steve Cotterill can now pick the 29-year-old again.
Ben Haim appeared as a substitute in Monday night's 4-0 friendly win over Havant & Waterlooville and will now fly out to America with the rest of the squad on Sunday for their pre-season training camp.
Cotterill told The News: "At this moment in time, Tal is going to be available to play. He will also be going to America.
"I think an agreement has been struck over monies that Tal has been owed. That's another important deal the (new) owners have sorted out. Hopefully now we have got a good player."