Lara Bingle and Sam Worthington reach settlement with paparazzo over assault

AUSTRALIAN actor Sam Worthington has avoided going to court after reaching a settlement with a New York paparazzo he was accused of assaulting.

The Avatar star became caught up in an altercation with Sheng Li in New York in February 2014.

Worthington and now-wife Lara Bingle allegedly assaulted the man after he took shots of the couple walking along the street.

Both men were arrested after the incident and Li slapped Worthington with a $US10 million ($A14.27 million) lawsuit.

The case was due to go to trial at Manhattan Federal Court on Tuesday, but by Thursday it was reported the two had reached a deal.

The terms of the settlement have not been disclosed, according to the New York Daily News.