Court records show that Singer, whose credits include "Bohemian Rhapsody", continues to deny he assaulted Cesar Sanchez-Guzman or ever attended a party with him on a yacht as it sailed on Lake Union and Lake Washington in Seattle.
Now Singer, who denies the allegations, will pay $150,000 to resolve that claim, Variety reports.
The suit was filed shortly after Singer was sacked as the director of "Bohemian Rhapsody". The trustee reopened the claim in 2018 because the possibility of a payout from the sexual assault lawsuit was not listed as one of Sanchez-Guzman's potential assets.
On Wednesday, the trustee recommended that the court approve the $150,000 settlement to which Singer's attorneys have agreed.
Singer denies the allegations and still maintains his innocence. Sanchez-Guzman claimed that Singer "lured Cesar into a room, shut the door and demanded that Cesar perform oral sex".
Singer has denied even knowing Sanchez-Guzman, and his lawyer reminds the media that the settlement is a "business decision" and is not an admission of guilt.
'The decision to resolve the matter with the bankruptcy trustee was purely a business one, as litigation costs would well-exceed the amount requested by the trustee to pay off the creditors who were owed money when the debtor filed for bankruptcy, ' the statement read.
If the settlement is approved, Sanchez-Guzman's lawsuit will be dismissed with prejudice, and $61,000 would go to creditors.
Singer was sacked from the Oscar-winning movie Bohemian Rhapsody for "unreliable behaviour" amid the allegations.
Singer is still facing numerous sexual abuse accusations from teenage boys, published as part of a piece in The Atlantic in January. The bulk of those claims represent student loan debt, which is not dischargeable in bankruptcy.