The gangsta rap mogul entered his no contest plea in Los Angeles Superior Court Thursday.
He will be formally sentenced to 28 years in prison in October.
Knight's plea, which was unveiled in a Los Angeles courtroom, came just days before he was to stand trial for the death of 55-year-old Terry Carter, who was run down outside an LA restaurant in 2015. Knight had been facing the possibility of life in prison, and his trial was scheduled to begin Monday with jury selection.
Knight, co-founder of the West coast rap label Death Row Records, was charged in the January 2015 hit-and-run death of Terry Carter after a dispute near the set of a commercial for the film Straight Outta Compton.
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Suge has maintained that he wasn't trying to hurt Sloan or Carter and says he was trying to escape after believing that they were both about to shoot him.
As part of the agreement to plead no contest to a single count of voluntary manslaughter, all other charges in the case were dropped.
Knight, who was out on bail in a robbery case at the time, fled the scene but was later arrested.
On Thursday, while Coen read legal language about the plea and told Knight he was subject to deportation if he was not a citizen, Knight said "ICE is coming to get me?" to a smattering of laughs.
Knight founded Death Row Records, once the well-known home of N.W.A. member Dr. Dre, as well as Tupac Shakur and Snoop Dogg. The reason why his prison sentence is so high is that he was previously convicted for a felony in 1997. Shakur's slaying remains unsolved.