Sylvester Stallone has settled his case against a contractor he sued for $1.4 million.

The 'Rocky' actor was suing Mohamed Hadid after alleging he did a bad job of renovating his property, describing him as an ''unscrupulous, unlicensed predator'' but the case has now been settled out of court and while details have not been revealed, a source told TMZ ''Sly was smiling.''

Meanwhile, Mr. Hadid had claimed the 66-year-old actor threatened to blow his head off.

He obtained a temporary restraining order against the 'Expendables' actor after alleging the Hollywood legend pushed him in court before saying: ''I am going to kill you mother****r.''

According to legal documents, the builder also alleged Stallone once threatened to smash his head in with a baseball bat and told him: ''Get these dirty Mexicans out of here or I will blow your head off.''

Stallone's lawyer Marty Singer believes the celebrity developer - who once appeared on US reality TV show 'Shahs of Sunset' - was simply making a ''desperate attempt'' to get attention, and said the actor was never told about a hearing for a restraining order.

He said: ''This is a desperate attempt by a man who wants to be a media star, which is why he's a guest star on 'Shahs of Sunset'.''