IKEA has agreed to pay $US46 million ($A66 million) to the parents of a two-year-old boy who died of injuries suffered when a 32-kilogram recalled dresser tipped onto him.

Jozef Dudek, of Buena Park, California, died in 2017 of his injuries, and his parents sued the Swedish home furnishings company in a Philadelphia court in 2018.

In the lawsuit, the Dudeks accused IKEA of knowing its Malm dressers posed a tip-over hazard and they had injured or killed a number of children.

However they claimed the company failed to warn consumers the dressers shouldn't be used without being anchored to a wall.

IKEA to pay $66 million over boy's death_1
Inset: Joleen and Craig Dudek, top right, comfort each other as they join a news conference in Philadelphia via video. Photo: AAP

The dresser was recalled in 2016, according to the suit.

The settlement also requires IKEA to meet with the advocacy organisation, Parents Against Tip-overs, and broaden its outreach to consumers about the recall of IKEA dressers, according to the Dudek's lawyers, Feldman Shepherd Wohlgelernter Tanner Weinstock Dodig.

The Dudek family will donate $US1 million from the settlement to organisations that advocate for more rigorous stability testing for dressers, they said.

IKEA said it offered its deepest condolences and was working to address "this very important home safety issue" including offering consumer education and safety workshops and working to make safer products.

"While no settlement can alter the tragic events that brought us here, for the sake of the family and all involved, we're grateful that this litigation has reached a resolution," it said.

-AAP