Analysts said the revenue was likely to be far higher than a previous deal.
Nokia shares, which fell in December when the patent dispute was announced,jumpsed as much as 8 per cent in early trading and later closed 6 per cent higher.
Nokia has settled its legal battle with Apple with a new patent licence agreement and also signed a business deal with the US giant, surprising investors who had expected the dispute to drag on.
The companies said on Tuesday that Nokia would receive an upfront cash payment and additional revenues from Apple starting from the current quarter, without giving details.
For instance, Apple acquired Emagic and its professional music software, Logic Pro, in 2002.
Fortunately, there are alternatives to the old ways of obtaining a patent.
“(The agreement) moves our relationship with Apple from being adversaries in court to business partners,” Nokia's chief legal officer Maria Varsellona said in a statement.