Mancuso Settles Suit Against Paramount : Entertainment: It is rumored that the former studio chairman, who sued for breach of contract, will receive more than $20 million.

Former Paramount Pictures Chairman Frank Mancuso confirmed on Tuesday that he has reached an out-of-court settlement in his $45-million lawsuit against the entertainment company.

Details of the settlement were not disclosed. But people close to the discussions said Mancuso will receive more than $20 million from the studio’s parent company, Paramount Communications Inc. The agreement also frees Mancuso to pursue other job opportunities.

Mancuso sued Paramount for breach of contract in March, after Stanley Jaffe was named to the newly created post of president and chief operating officer. The former studio boss, who suffered a run of bad luck at the box office with such films as “The Godfather, Part III” and “Another 48 Hours,” claimed he was abruptly fired after Jaffe’s appointment.

Creative Artists Agency Chairman Michael Ovitz reportedly brokered the settlement, and Mancuso also brought in prominent Hollywood lawyer Bert Fields. Sources close to the talks said personal animosity between Mancuso and Paramount Communications Chairman Martin S. Davis initially prevented the two sides from coming together. An agreement was finally hammered out during a week of tough negotiations.

The agreement fortifies Ovitz’s reputation as Hollywood’s most omnipresent deal maker. His agency once represented Jaffe, and he also helped negotiate the contract of Mancuso’s replacement, former NBC programming chief Brandon Tartikoff.

Ovitz declined comment on the settlement.

In a prepared statement, Davis said he was pleased to have the issue resolved. “During his long career with Paramount, Frank (Mancuso) played a major role in the growth of the company and made a lasting contribution to the entertainment industry,” Davis said.

Mancuso wished Paramount “continued growth and prosperity.” The former studio chairman is said to be considering several job possibilities but declined comment on his plans.