Gillette and Schick-Wilkinson Sword have reached an out of court settlement ending a long-running legal wrangle between the razor firms.
Gillette and Wilkinson Sword compete in a cut-throat market
The world's two biggest shaving companies had been locked in a series of disputes over razor patents and advertising claims.
Gillette said both companies had now "resolved the vast majority of litigation between them".
Wilkinson Sword added that the terms of the deal would remain confidential.
Gillette previously claimed that its smaller rival had infringed its patent rights after Wilkinson Sword introduced its four-blade Quattro razor.
Gillette, which makes the Mach3 range of shavers, argued that any razor head with three or more blades was covered by its patent.
Wilkinson Sword, which is owned by battery maker Energizer Holdings, had sued Gillette over advertising claims.
In 2004, a Dutch court ruled that Wilkinson Sword and Gillette could both claim their razors were the best, as members of the public would probably not believe them anyway.
"While Gillette and Energizer will remain competitors, we'll compete in the marketplace, not in the courtroom," a spokesman for Gillette said.
Gillette was bought by US consumer giant Procter & Gamble last year in a deal worth $57bn (£32bn).