The 'Rocky' actor alleged that Hadid did a bad job of renovating his property, describing him as an 'unscrupulous, unlicensed predator' but the case has now been settled out of court, reported TMZ online.
Meanwhile, Hadid had claimed the 66-year-old actor threatened to blow his head off.
He obtained a temporary restraining order against the 'Expendables' actor after alleging the Hollywood legend pushed him in court before saying, "I am going to kill you."
According to legal documents, the builder also alleged Stallone once threatened to smash his head in with a baseball bat.
"This is a desperate attempt by a man who wants to be a media star, which is why he's a guest star on 'Shahs of Sunset'," Singer said.