The 'New Slaves' rapper, 36, was accused of attacking an unidentified 18-year-old man in the waiting room of a chiropractor's office in Los Angeles earlier this month after the youth hurled racial slurs at his fiancée, Kim Kardashian, and has now settled the case out of court.
A source told gossip website TMZ.com that the alleged victim has agreed to the civil settlement despite initially demanding a much larger six-figure sum and no longer wants to move forward with a criminal prosecution.
Law enforcement sources said the District Attorney in L.A. hasn't decided whether to charge Kanye, 36, with battery but it is now very unlikely he will be prosecuted.
Kanye's lawyer, Shawn Holley would not comment on the settlement.
The teen is said to have triggered the altercation after he met Kim - who was alone - on the streets of Beverly Hills and called her a "n****r lover" and a "stupid sl*t". She then tried to walk away, but the man pursued her, and she called Kanye, who raced to the scene.
A source claimed at the time: "He threatened to hit her. He said, 'I bet I could beat you'.
"She's tiny, and if someone is following you screaming, 'Slut! n****r lover! ****,' you don't know if you're dealing with an insane person who will go postal and hurt you. She was so upset, she was crying."
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