The Goodfellas star signed a $3 million (£1.8 million) deal to play the gangster's associate and childhood pal Angelo Ruggiero in Gotti: In the Shadow of My Father, alongside John Travolta and Kelly Preston.
He filed suit against Fiore Films in July 2011, claiming he had piled on weight to portray Ruggiero, only to be told he would be playing a smaller part.
His attorney, Jessica Trotter, confirmed on Monday (04Feb13) that Pesci has reached a undisclosed out-of-court settlement with bosses at the production company.
Travolta will play Gotti in the film. The crime boss died behind bars in 2002.