Steven Seagal and his former business partner have agreed to settle a long-standing legal dispute that included allegations of contract breach and Mafia extortion, an attorney said Wednesday. The actor and Julius R. Nasso worked together for years, forming Seagal/Nasso Productions and producing movies including "Marked for Death," "Out for Justice" and "On Deadly Ground."

But the two had a falling-out, and Nasso sued Seagal for $60 million, accusing the actor of backing out of a four-movie deal.

Nasso served a year in federal prison starting in 2004 after admitting he plotted to have the mob shake down Seagal.

Seagal testified at the racketeering trial of Peter Gotti, brother of the late reputed mob boss John Gotti, that Gambino crime family enforcers demanded that Seagal keep working with Nasso and pay him $150,000 a film.

Seagal and Nasso agreed in an out-of-court settlement that Seagal would pay Nasso an undisclosed sum of money and write a letter supporting Nasso's application for a pardon, said Robert Hantman, an attorney for Nasso.

"After six years of litigation, any misunderstandings between Mr. Seagal and Mr. Nasso have been resolved, and (Nasso) looks forward to his future and making movies," Hantman said.

Neither Seagal nor his lawyer could be reached by telephone for comment Wednesday evening.