"The Belgian Railways (NMBS/SNCB), AnsaldoBreda and its controlling company Finmeccanica have settled their discord," Finmeccanica said in a statement.
"The settlement was reached from the advantages both parties see in preventing lengthy legal proceedings."
The Belgian railway company had claimed €27 million from AnsaldoBreda after being forced to cancel its order for 19 high-speed trains — known as the V250 — designed to connect Brussels and Amsterdam.
The link was launched to much fanfare in 2013 but had to be aborted just five months later after serious technical faults in the trains emerged.
Dutch and Belgian railways had ordered a total of 19 trains from AnsaldoBreda for €20 million.
"The agreement will allow AnsaldoBreda to exploit the possibility of selling trains to other customers and with some customizations make them fit for other requirements and needs of such customers.
"As part of the agreement both parties will refrain from making financial claims, including supposed damages on both sides," Finmeccanica said.
Finmeccanica earlier settled with the Dutch railway.