A man who sued Sacha Baron Cohen after appearing in his 2009 movie Bruno has settled his lawsuit with the comedian.

Ayman Abu Aita filed a $110 million defamation suit at Washington, D.C.'s Superior Court after a caption in the controversial film described him as "Terrorist group leader, Al Aqsa Martyrs Brigade".

His case later moved to a New York court after he included TV host David Letterman in the suit for airing the clip on his talk show.

Abu Aita claimed to have suffered a "loss of reputation" and death threats after the movie's release, but lawyers for Cohen argued he was protected by free speech.

However, the case was settled earlier this week (begs16Jul12), with a lawyer for Abu Aita telling the New York Post the matter has been resolved "to the mutual satisfaction of all the parties".

The terms of the settlement are confidential.