The Canadian model was granted civil protection from the French actor - who is engaged to his ex-girlfriend Halle Berry - in Los Angeles last week after claiming Olivier threatened to kill him when they got into a violent bust-up but has now dropped his plan to make it permanent.
A source told gossip website RadarOnline.com: ''Gabe has agreed to drop legal proceedings for the temporary restraining order against Olivier to be made permanent.
''Gabe suffered horrific injuries from the fight, but as part of the settlement he reached with Halle on Thursday he agreed to drop the bid for the permanent restraining order. Gabe feels that there are enough layers of protection in the settlement agreement that will protect him and Nahla in the future.''
A hearing to establish protection orders for both parties was set for December 17 but insiders say that ''neither party will show in court on that day and the matter will simply be dismissed by the judge.''
The 36-year-old model previously claimed in court documents that Olivier said he would kill him if he didn't let Halle move to France with their four-year-old daughter Nahla.
The duo got into a heated fight after which Gabriel was hospitalised for multiple injuries including a broken rib and a swollen black eye before he was later arrested on suspicion of a misdemeanour battery.
Halle, 46, and Gabriel have now reached an ''amicable agreement'' and are hoping to move forward for the sake of Nahla.
A source said: ''All parties wanted what was best for Nahla and that was the main goal of the settlement,'' the source says. ''All three of the adults are moving on and have vowed to never let something like this ever happen again.''