Joint owner of podcast company 123 Podcast, Keshnee Ibrahim, had a 45 per cent stake in The Karl Stefanovic Show but feared she would be cut out when the host engaged in what she called oppressive conduct.
She filed an urgent application with NSW Supreme Court in September to defer a scheduled meeting out of concern she would be removed as a director of the company.
But a notice of discontinuance was filed with the court on Friday afternoon, days before a two-day hearing was scheduled to begin.
Formal orders regarding the finalisation of the matter will be made on Monday.
Reports suggest the parties reached a confidential settlement which allows Stefanovic to buy out Ibrahim's share of the podcasting business.
The cessation of court proceedings brings an end to what Stefanovic's barrister previously told the court was an "irreconcilable breakdown" in their relationship.
In September, barrister Samuel Murray disagreed the podcasting company was being operated in a manner that was oppressive to Ibrahim's interests - as she alleged - but told a court a buyout of shares was appropriate.
The partnership breakdown came two months after Stefanovic's controversial interview with far-right figure Stephen Yaxley Lennon, aka Tommy Robinson, triggered public backlash and Nine terminating his contract.
The former Today host has since deleted the podcast episode with Robinson, accused of fuelling violent anti-immigration protests and Islamophobia in the UK.
Soon after the severance from Nine was announced, the media personality said he was now "truly independent".
Once described by Nine stablemate Richard Wilkins as a mix of "world's best broadcaster and naughty schoolboy", Stefanovic has carved a niche for his podcast by interviewing some of Australia's most controversial figures.
This includes Pete Evans, who has drawn ire for his stance on vaccinations, promotion of unsubstantiated theories, and publication of an alleged neo-Nazi symbol.
During their chat, Stefanovic apologised to Evans if he had ever played a part in the condemnation of his views or called him a "whack job".
He has also interviewed One Nation leader Pauline Hanson for the show and will team up with her again at a conservative political conference over the weekend.
Stefanovic and axed shock jock Kyle Sandilands bonded over their recent falls from grace on The Karl Stefanovic Show in August, calling themselves "failed media giants".
Sandilands was sacked from his radio gig after an on-air bust-up with co-host Jackie O Henderson, later settling with his former employer ARN for $12 million.
There have been reports Stefanovic and Sandilands are considering teaming up, but nothing has been announced.
Stefanovic recently dubbed himself Joe Bogan - a reference to popular American podcaster Joe Rogan, who has interviewed Donald Trump and avowed conspiracy theorists.
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