Farrell sued Narain last summer, for allegedly planning to commercially release the 15 minute footage. The actor is also suing ICG, seeking general and compensatory damages, as well as an injunction prohibiting the promotion and sale of the tape reports ABC news.

On Sunday, the feuding pair and their lawyers spent five hours reaching a deal, but Farrell still intends to continue his legal action against ICG. The two sides are due to meet in Los Angeles Superior Court on July 21, says the Daily News.

The two hadn't seen each other face to face since word leaked last year that representatives for Narain were peddling an explicit video from the couple's romp reports New York Daily News.

Narain's attorney, Leodis Matthews insists that there was "no tension" between the former couple. But NYDN hears that they sat on opposite ends of the negotiating table - and in separate rooms - and that ­Farrell showed little affection for the woman who, so far, has cost him an estimated $500,000 in legal fees.

Also present at the summit were Phoenix-based agent David Hans Schmidt and representatives for the Internet Commerce Group (ICG), who together had hoped to sell the tape.

"We were able to completely resolve it. The terms are confidential," Narain's attorney, Leodis Matthews, told the New York Daily News.