The premiership-winning rugby league coach was suing the club in the NSW Supreme Court over its decision to terminate his contract early.
On Friday, a two-day hearing scheduled for the following Monday was vacated and the matter dismissed by Justice Kelly Rees.
According to court sources, the parties signed an agreement to settle the matter and will be paying their own legal costs accrued so far.
The club initially offered Hasler a $565,000 settlement after parting ways on rocky terms, but he was seeking double that sum.
Issues between the coach and his then-club emerged after a high-profile controversy during the 2022 season, when seven players opted against wearing Manly's LGBTQI jersey on religious grounds.
Hasler criticised the club's handling of the saga, saying players should have been involved in discussions about the jersey.
The team lost seven straight games after the controversy, dashing what had been a promising season and the club's hopes of reaching the finals.
Hasler's position came under scrutiny despite the now-63-year-old having a year to run on his contract.Â
The early exit from the season meant he failed to satisfy a clause in his contract that would have triggered an automatic extension and he was let go by the club.
Hasler was appointed head coach of the Gold Coast Titans on a three-year deal ahead of the 2024 season.
Attempts to contact the Sea Eagles and Hasler for comment have been unsuccessful.