Some settlements are not taxed at all (for example, recovery for personal injury, medical expenses, lost wages) so we would have to know what the settlement was for.  If the settlement is, in fact, taxable and you received the entire settlement there is no way to avoid paying the tax on the entire settlement in the year you received it.

If the settlement is taxable and the payment is not eligible to be spread across multiple tax years then the entire amount is taxable in the year received.  Taxes owed in the current tax year cannot be spread over multiple tax years.