Valerie Harper -- $50K Settlement in Cancer Lawsuit ... On Broadwayyyy

Valerie Harper is squashing her cancer beef with the Broadway playwright who accused her of lying about the disease ... and she's coming out of the legal battle $50,000 richer.

The settlement docs -- obtained by TMZ -- call for Harper's attorney to receive nearly $50K from Matthew Lombardo ... the guy who wrote "Looped."

We broke the story .. Lombardo sued Harper for $2 million, claiming she hid the truth about her cancer's return in 2012. Harper had previously sued him for refusing to pay the rest of her contract after cancer forced her to drop out.