Jan Kemp said yesterday that she and the University of Georgia had settled their litigation, that she will return there as an assistant professor and that the school will pay her about $1 million besides.

She won't return as coordinator of the English program in the remedial Developmental Studies Program, the job from which she'd been fired. She contended in court that she'd lost that job because she'd objected to athletes getting special classroom treatment. A federal court jury awarded her $2.58 million last February, but last week an appeals judge cut that to $680,000, prompting her to threaten to go to court again.

There will be another difference, too: She won't be responsible to Virginia Trotter, the vice president for academic affairs, or Leroy Ervin, the developmental studies director. They were defendants in her suit . . .

Southern California's basketball team has lost its top scorer, Tom Lewis, who averaged 17.6 points last season. One day earlier, classmates Bo Kimble and Hank Gathers said they are leaving, too, because Stan Morrison no longer coaches the team . . .

Scott Skiles, 21, a guard on Michigan State's basketball team, began serving 30 days in the Marshall County Jail in Plymouth, Ind., but could get 15 days off for good behavior. He was jailed for violating probation . . .

Sen. David Pryor (D-Ark.) has introduced a bill that would repeal the Internal Revenue Service's ruling on tax deductions for private contributions to college athletic scholarship programs.

He objects to the IRS allowing full deductions to corporations but limiting an individual's deduction. He also said the ruling is vague on what constitutes fair market value, especially on tickets that aren't sold publicly, such as tickets for the ACC and Big East basketball tournaments. FOOTBALL

The Washington Redskins have signed these free agents:

*Stan Yagiello, a 6-foot, 190-pound quarterback from William and Mary. He was 11th nationally in passing efficiency last fall, completing 240 of 413 passes for 2,962 yards and 23 touchdowns.

*Glenn Pruitt, a 6-0, 198-pound receiver from Baylor. He caught 45 passes for 830 yards and eight touchdowns in college.

*Robert Williams a receiver from Baylor. He caught 19 passes for 210 yards in college.

*James Noble, a receiver who scored 32 touchdowns in his career at Stephen F. Austin.

*Richie White, a 5-11, 193-pound linebacker from Central Arkansas.

*Mark Bartlett, a 6-6 tackle, guard and tight end from North Texas State.

*Biddle Medley, a defensive back from Grambling.

*Joseph McHale, a 6-2, 225-pound linebacker from the University of Delaware . . .

Owner Alex Spanos of the San Diego Chargers says he's confident James FitzPatrick is off drugs. Spanos said he made FitzPatrick the team's first draft pick only after FitzPatrick promised he would undergo random drug testing. Spanos confirmed that FitzPatrick, an offensive tackle, was one of 54 collegians who tested positive for marijuana at an NFL scouting workout. Three others tested positive for cocaine.

"I wouldn't have touched any of the cocaine users," Spanos said . . .

An investment group bought a three-year option to buy the New England Patriots and plans to buy the stadium and adjacent raceway, Drew Lewis, a former secretary of transportation, said at a news conference at Sullivan Stadium.

"I am a financial participant and would be a participant if we exercised our option to buy the Patriots," he said. So would Jim Murray, formerly of the Philadelphia Eagles, and John Charlton of Warner Cable Communications . . .

Gene Stallings, new coach of the St. Louis Cardinals, thinks it would be a good idea if his quarterbacks, Neil Lomax, Scott Brunner and Rick McIvor, stayed in St. Louis year-round so they could get together and practice their passing every day. Nothing doing, Lomax and Brunner told him.

Lomax said he will remain with his family and pointed out that he and his wife are expecting a baby. Brunner said he has business interests at home in Princeton, N.J., and, besides, "each individual has his own life."

Said Stallings: "I know if I was one of the quarterbacks who haven't played a lot, I'd be around here every day. Somewhere along the line, a guy has to try to win a job."

McIvor, the apparent third-stringer, said he'd think about it. BASEBALL

The Associated Press reported that Manager Whitey Herzog of the Cardinals might become NL president when Chub Feeney retires this fall. "That's the first I've heard of it," Herzog said. "It would sure be nice to be in charge of the umpires for a while." BASKETBALL

The NBA decided Coach Mike Fratello of the Atlanta Hawks won't be fined for Tuesday's ruckus in Boston. Dave Gately, the official scorer, had told Fratello to stay in the coaches' box. That got Fratello mad. Then, when a fan threw a drink in Fratello's face, that got him fighting mad. The league noted that scorers can't order coaches around. TENNIS

Top-seeded Thierry Tulasne will play Jimmy Arias in today's semifinals of U.S. Open Clay Courts. Andres Gomez and Martin Jaite will play the other one. In women's play, top-seeded Steffi Graf will play unseeded Mercedes Paz, and Manuela Maleeva will play Gabriela Sabatini.