The publication reports that an order signed by Judge James Selna at a California court said the case had been dismissed after an undisclosed agreement had been reached between the Sheeran and the parties involved, including songwriters Martin Harrington and Thomas Leonard.
One of Sheeran's chart-topping tracks is currently under hot water.
The Grammy-winning singer has been hit with a lawsuit by Martin Harrington and Thomas Leonard, and their publishing company HaloSongs, who allege that Sheeran's "Photograph" is a copy of their 2009 song "Amazing."
Harrington and Leonardo's single was sung by Matt Cardle, the winner of the 2010 season of The X Factor.
The plaintiffs are currently being represented by Richard Busch, the same attorney who represented the Marvin Gaye family during their recent lawsuit over the single, "Blurred Lines."
E! News has obtained the court documents, which claim that "the songs' similarities reach the very essence of the work. The similarities go beyond substantial, which is itself sufficient to establish copyright infringement, and are in fact striking."