"He's decided to bring the civil matter to a close and draw a line under it," Modi's lawyer Rajesh Vyakarnam told the 'New Zealand Herald'.
Modi had lost to Cairns in a 2012 court battle after the flamboyant administrator was sued by the Kiwi player for claiming that he was involved in match-fixing in the now- defunct Indian Cricket League.
Modi had in 2010 tweeted that Cairns had been left out from the Indian Premier League (IPL) auction due to his "past record of match-fixing".
"Reputationally, I'm completely scorched, burnt completely, but it hasn't stopped me and it won't stop me. I'll keep going forward," Cairns had said after being cleared last year.