Allu Aravind, the producer of "Magadheera" had gone to court seeking an injunction against the release of the film alleging that its plot was similar to their 2009 film.
The S S Rajamouli-directed film, based on the theme of reincarnation, featured Ram Charan and Kajal Aggarwal in the lead.
"Raabta", a romantic thriller directed by Dinesh Vijan, also revolves around the theme of reincarnation and is co- produced by Homi Adajania and Bhushan Kumar.
A statement from "Magadheera" producer Allu Arvind confirmed that they had withdrawn the case.
"...Both the parties representing 'Magadheera' and 'Raabta' have settled the ongoing legal dispute amicabally outside the court. Hence, Geetha Arts has officially withdrawn the case," the statement from Aravind read.
"Raabta" filmmakers claimed that the similarities, if any, were generic to every film made on reincarnation of two lovers such as 'Prem', 'Hamesha', 'Om Shanti Om' and 'Kudrat'.
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