Anthony Hansen, 25, was admitted to the intensive care unit in Manning Rural Referral Hospital in Taree on Christmas Day 2015 after a drug overdose.

He sued the health department after alleging the hospital incorrectly inserted a intravenous drip line into the artery running from his heart to his brain.

The hormone noradrenaline, which should only be administered into veins, was fed directly to his brain, causing the stroke and brain damage, his case alleged.

The NSW Supreme Court on Monday approved a confidential settlement between Mr Hansen and the hospital's operator.

The court was told though Mr Hansen's left-leg function had recovered well, he still had limited function of his left arm, visual impairment to both eyes and suffers cognitive difficulties.

Associate Justice Joanne Ruth Harrison said she was satisfied the compromise was reasonable and beneficial to Mr Hansen, and that the agreed sum was appropriate.

"He has difficulty functioning independently as a result of his injuries and continuing disabilities," Assoc Justice Harrison said.

"(Mr Hansen) will require ongoing assistance into the future for personal and domestic care."

She said Mr Hansen planned to eventually move out of his family home and would need commercial assistance to ensure quality of life.

Australian Associated Press