Liam was suing Noel for slurring his professionalism, but has now dropped his High Court writ after Noel apologised, the Sun reports.
Noel had said in a recent press conference that Oasis cancelled their 2009 V Festival performance because Liam was hungover (contrary to the "official" line that Liam had laryngitis).
During a webchat about his new single, however, Noel decided to play nicely.
Noel said: "For the record, it is a fact that he was diagnosed with laryngitis and it is a fact that he had a doctor's note to prove it. I'd just like to say that if he gets offended by my opinions on such things then I apologise.
"It's all getting a little silly and out of hand and it's not very cool."
Turns out that was all Liam needed to hear, and he got his the lawyers to end the battle.
Noel also praised his brother's vocal talents during an interview on BBC 6 Music this week, saying Liam has "such a great rock voice."
Let's hope some brotherly love can flow again...