Kanye West has won six Grammy Awards in two years |
Both sides said they had resolved the disagreement over West's use of the name "Evel Kanyevel" in a music video.
The 69-year-old daredevil had claimed his image was tarnished by the clip's "vulgar, sexual nature", but said the settlement satisfied both parties.
A spokesman for West confirmed that the two sides had reached an agreement.
The video, for the 2006 single Touch The Sky, showed the rap star cavorting with Pamela Anderson and trying to jump a rocket-powered motorcycle over a canyon.
It appeared to be a parody of Knievel's attempt to jump Snake River Canyon in Idaho in 1974 - which failed after a parachute on his rocket-powered "Skycycle" opened too early.
'Filth'
The stuntman sued West and his record label last December, claiming the rapper had damaged his reputation by using the Knievel image to "promote his filth to the world."
But Knievel, whose real name is Robert Craig Knievel Jr, changed his mind about the West after meeting him in person.
"I thought he was a wonderful guy and quite a gentleman," he said.
"We settled the lawsuit amicably. I was very satisfied and so was he."
The pair agreed not to discuss the terms of the settlement in public, he added.
Knievel also expressed concern for West, who is grieving the sudden death of his mother on 10 November.
"I know he's had some tough times the past few weeks, and I hope things work out," he said.
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