The San Francisco Chronicle, citing league sources, reported Tuesday that the Raiders are paying Russell nearly $3 million to settle a dispute over his rookie contract.
Russell signed a six-year, $68 million contract with the Raiders after he was selected No. 1 overall in the 2007 draft.
He was paid $36.4 million during his time with the Raiders and was still owed $3 million when he was released in 2010 after three lackluster seasons. Oakland filed a grievance against Russell seeking to recoup $9.55 million in salary advances, while the quarterback countered with a grievance of his own, saying he was still owed $9 million.
Russell hasn't played a down of football in the NFL since 2009 and won just seven of 25 starts during his career at Oakland. He completed 52.1 percent of his passes for 18 touchdowns, 23 interceptions and a passer rating of 65.2.
He is attempting to return to the NFL and had a tryout with the Chicago Bears last month in which he demonstrated that he had significantly improved his conditioning level and that he has lost nearly 50 pounds. However, he was inconsistent throwing the football during the workout and remains unsigned.