The South African Human Rights Commission (SAHRC) and Springbok lock Eben Etzebeth have mutually agreed to withdraw the review application of the so-called Langebaan Four case in the North Gauteng High Court in Pretoria.
"The matter is to proceed to the Equality Court to reach finality in a more expeditious and amicable manner," the parties said in a joint statement on Friday.
"Both Mr Etzebeth and the Commission are confident that this would be in the best interests of all parties involved."
The SAHRC was representing four men in the Equality Court case against Etzebeth, who was accused of allegedly using a racial insult when leaving a pub in Langebaan on the West Coast in the early hours of August 25 with a group of friends.
Etzebeth subsequently applied to review and set aside the commission's decision to institute legal proceedings against him.
It is not yet clear when the Equality Court case will proceed.