The US actor was holding a Colt gun during a rehearsal for "Rust", a Western being filmed in New Mexico last October, when it discharged a live round, killing 42-year-old Halyna Hutchins.
Actor Alec Baldwin has said he had reached a civil settlement with the family of the woman he fatally shot with a prop gun on a film set last year.
"We are pleased to announce today the settlement of the civil case filed on behalf of the family of cinematographer Halyna Hutchins," Baldwin said on Wednesday in an Instagram post.
"Throughout this difficult process, everyone has maintained the specific desire to do what is best for Halyna's son," Baldwin said in his Instagram post.
Baldwin, who was a producer as well as the star of the movie "Rust," had been told the gun was safe and has previously said he did not pull the trigger.
Production on the movie will continue in January, filmmakers said in a statement Wednesday, with Hutchins' husband Matthew Hutchins taking on the role of executive producer.
"I have no interest in engaging in recriminations or attribution of blame (to the producers or Mr. Baldwin)," Matthew Hutchins said in the statement. "All of us believe Halyna's death was a terrible accident."
Honouring Halyna's legacy
According to Matthew Hutchins, "all the original principal players" will return to the set.
"Rust" director Joel Souza, who was also injured in the shooting, said he would devote his work on the film going forward "to honouring Halyna's legacy and making her proud."
"Though certainly bittersweet, I am pleased that together, we will now complete what Halyna and I started," he said in a statement Wednesday.
The family's lawsuit was one of a series of civil proceedings over the fatal shooting, which sent shockwaves through Hollywood, and led to calls for guns to be permanently banned from sets.
Investigators have not filed criminal charges over the tragedy, but have refused to rule them out against anyone involved, including Baldwin.