Conservatives' leader Colin Craig has dropped legal action against the Green Party co-leader Russel Norman over comments Dr Norman made at the Big Gay Out.
Mr Craig launched defamation proceedings in March this year after Dr Norman said Mr Craig thought a woman's place was in the kitchen and a gay man's place was in the closet.
In a joint statement, the leaders said today that they have agreed to resolve the dispute.
While they disagreed over what Dr Norman meant with his comments, they both said it was not worth continuing in court.
Both parties have agreed to pay their own legal costs.