Suniel Fox and Henry Strange said the singer copied an "atmospheric and melancholic" track called Vibeking to create his 2018 song Call Out My Name.
The two songs contained similar "lead guitar and vocal hooks" said their lawyer when the case was filed in 2021.
The Weeknd denied the claims. Terms of the settlement have not been disclosed.
"The parties are still in the process of formalising, executing, and consummating" the deal, said Fox and Strange's lawyers in a filing at Los Angeles federal court on Friday.
Call Out My Name was the only single released from The Weeknd's 2018 EP My Dear Melancholy, reaching the top 10 in both the US and UK.
Although it is in a different key to Vibeking, Fox and Strange - who perform as the electro-house duo Epikker - pointed out several similarities between the two songs.
"Both works are in a 6/8 meter that is less common in popular music," they said in their initial court filing.
"Both works are played at a similar tempo. And both works use features of electronica, ambience, pop, hip-hop, rock, and R&B to achieve a particularly atmospheric and melancholic sound."
Source: BBC News