Court records show the deal was reached late Thursday in Los Angeles, just days before a trial was scheduled to begin.
Attorneys for Singleton and Paramount said the settlement terms are confidential, but the matter was amicably resolved.
Singleton produced "Hustle & Flow" and claimed he agreed to work with Paramount on distribution rights because of the opportunity to make two films for the studio.
A judge had previously ruled Singleton was not entitled to re-acquire rights to 2005's "Hustle & Flow," which earned a best actor nomination for Terrence Howard and won for best song.
(Copyright 2012 by The Associated Press. All Rights Reserved.)