Fetty Wap better dig deeper into his pockets if he wants to settle a suit with his old homie, P-Dice -- 'cause $1 million ain't cuttin' it ... according to Dice himself.
We got the former Remy Boyz member leaving Panera Bread in NYC with a fat stack of cash and a grip of his homeboys, and he says Fetty tried settling last month with $6 mil less than what Dice wanted.
We broke the story ... PD claims Fetty cut his verse out of the hit song "679" to allegedly avoid paying him a higher percentage than he got off the multi-platinum song.
Watch -- PD says this isn't a street thing ... strictly business. And Fetty better pay up if he knows what's good for him.