Sean Penn has settled his $10 million lawsuit against Lee Daniels.

Sean Penn

Sean Penn

'Empire' creator Lee implied in an interview last year that Sean hit women and the actor reacted by filing the lawsuit against him but Lee has now retracted his statement and apologised for his comments.

He said in a statement: "I am so sorry that I have hurt you, Sean, and I apologise and retract my reckless statements about you. How thoughtless of me. You are someone I consider a friend, a brilliant actor and true Hollywood legend and humanitarian.

"I too have been the subject of false attacks by others, like those made here. My most important role is as a father, and it is important to me that my children learn that it is wrong to reference gossip as fact, as I did here. That can be very damaging and hurtful.

"Domestic violence is a very serious issue. My comments were cavalier; it was not my intention to diminish the severity of the issue, but rather to express a view regarding the disparate treatment of men of colour in our national conversation. I apologise again for the distress that this has caused you and your family."

He also donated an undisclosed amount to Sean's charity, J/P HRO.

Sean said in his own statement: "I accept Lee's heartfelt apology and appreciate the sincerity with which it was delivered. I also accept and appreciate his generous donation to J/P HRO, which will have a transformative effect on the lives of those we serve in Haiti."

The legal battle began after Lee used his interview in The Hollywood Reporter to compare Sean to 'Empire' star Terrence Howard, who has previously been accused of numerous incidents of assaulting women.

He said: "He ain't done nothing different than Marlon Brando or Sean Penn, and all of a sudden he's some demon."