The studio released a statement on Monday saying that Sheen's lawsuit has been settled "to the parties' satisfaction." The statement said terms of the settlement are confidential.
Sheen was fired from the show earlier this year, prompting him to file a $100 million lawsuit for wrongful termination.
At the time he was fired, Sheen was the highest-paid actor in television, reportedly earning between $1.2 million and $2 million per episode.
He went on a media blitz, repeatedly blasting the studio and show producer Chuck Lorre and using catchphrases like "Tiger Blood" and "winning."
While presenting at the Emmy Awards last week, Sheen as addressed the "Two and a Half Men" cast and crew, saying, "I wish you nothing but the best for this upcoming season."
The Associated Press contributed to this report.