The 29-year-old from North Carolina was already under contract to Acclaim Entertainment when he sued in February.
He had agreed to be featured in the XXX game, having been given the impression that it would include adult slapstick comedy; but when he discovered that it would feature material that he described as "sexually explicit and pornographic," he demanded that his image be removed from it.
He sued for $21 million, citing breach of contract, injury to reputation, false advertising and invasion of privacy. The game flopped when major retailers refused to stock it.
However, according to Monday's statement by Acclaim, its differences with Mirra have been resolved, without paying him monetary damages. The company said Mirra will remain in contract with the company until 2011.
Without disclosing further details of the settlement, Acclaim CEO Rod Cousens said: "We are pleased to have amicably resolved this matter with Dave and anxiously look forward to resuming our successful working partnership."
"I'm glad that this issue is behind us," added Mirra.