Mr Bing had been suing Mr Kerkorian for invasion of privacy and trespassing, claiming that the 84-year-old studio head was behind an effort to dig through Mr Bing's household rubbish for dental floss.
The producer alleged that Mr Kerkorian was trying to prove, through DNA analysis, that Mr Bing had fathered the four-year-old daughter of Kerkorian's ex-wife.
But Mr Bing's publicist Annett Wolf said on Tuesday: "They have amicably resolved all outstanding differences between them.
"Both expressed their regret that the dispute ever occurred."
The suit was filed in Superior Court on 16 May but the settlement was reached, said lawyers, after "additional facts" came to light.
Mr Kerkorian's attorney Terry Christensen said: "The two met on a Sunday a week or two ago and they talked and have been in close contact ever since.
"Sometimes the lawyers just have to get out of the way."
Sterile
Mr Kerkorian's ex-wife, Lisa Bonder, 37, is fighting in court for $320,000 (£210,000) a month from her former husband to support daughter Kira.
Mr Kerkorian, who was married to the former tennis pro for only a month in 1999, currently pays her $50,000 (£33,000) a month.
He has denied that he is the father of Kira and claims he is sterile - and has alleged that Mr Bing is the true father.
Lisa Bonder Kerjorian recently admitted faking a DNA paternity test, by using saliva she obtained from Kerkorian's adult daughter.
Recently, DNA tests confirmed that Mr Bing was the father of actress Liz Hurley's baby boy.
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