Jerry Falwell Jr has announced he is abandoning a lawsuit against the evangelical university he led until August this year.
He resigned from Liberty University in a cloud of scandal over an alleged affair involving his wife and a former business associate.
At the time, he was already on indefinite leave over a photo of him standing next to his wife's assistant with his pants unzipped, exposing his abdomen and underwear.
In October, he announced he was suing the university for defamation and breach of contract over comments it made at the time of his resignation.
"These statements had the effect of affirming false claims that an individual made publicly against Mr Falwell after years-long attempts at extortion against Falwell and his wife Becki," said law firm Quinn Emanuel.
Mr Falwell Jr has now decided to halt legal proceedings against the university.
"I've decided to take a time out from my litigation against Liberty University, but I will continue to keep all options on the table for an appropriate resolution to the matter," he said, according to The News & Advance.
Liberty University welcomed the news.
In a statement, it said: "Falwell's unilateral and voluntary dismissal was not prompted by any payments, promises, or other consideration from Liberty.
"The university's administration and Board of Trustees are pleased that Falwell has dropped his lawsuit and look forward to pressing onward with the work of Liberty's President and Chancellor Search Committee to find the new leadership to succeed Falwell."