He is also in line to receive about $30 million of stock options and will receive his $1 million per year salary until December 31st when he leaves the company.
Mr Prince will receive an office in midtown Manhattan and the agreement applies to December 2012 or until he finds alternative employment.
The former chairman who resigned on the back of $11 billion losses on sub-prime mortgages will also be prevented from poaching any senior management staff from Citigroup.
The news follows the compensation package given to Stan O'Neal, who parted company with Merrill Lynch last month.
Mr O'Neal departed with $161.5 million in share and retirement benefits.
But Mr Prince's package is considerably smaller and could be diluted with Citigroup's falling share price which has plummeted in recent weeks.