Musician Chris Pitman sued Rose for $163,000 (£130,000) in unpaid wages back in September (16).
Pitman was a member of the group from 1998 until he left the band in April this year (16), ahead of a tour featuring the return of band members Slash and Duff MCKagan.
The keyboardist and bass player claimed Rose owed him the money in back pay for his work with the band in 2011.
According to TMZ.com, Pitman claimed Axl wrote him a promissory note - a legal instrument in which one party promises in writing to pay a determinate sum of money to the other - for $125,000 (£100,000), stipulating the sum be paid by October, 2012.
The money was not paid, and Pitman demanded $163,000 (£130,000) in total due to interest payments.
Sources told TMZ.com Rose and Pitman reached a confidential settlement earlier this month (Nov16), and the case has now been dismissed.
The return of GUNS N' ROSES' classic line-up has reportedly seen the band net an estimated $100 million (£80 million) from their Not in This Lifetime... world tour.
Despite being one of the band's longest serving members, Pitman was left out of the line-up in favour of Melissa Reese for the new tour.
He took to social media to slam the group for embarking on a "nostalgia tour", furiously calling the gigs "a money grab". He subsequently apologised, writing on Twitter, "I sincerely apologize to GNR (Guns N' Roses), especially the band and crew, for stupid comments about upcoming tour... remember kids, dont (sic) drink n text!"