"New Edition" singer Johnny Gill has buried the hatchet with the woman who sued him for calling her "f**king nuts" and "deranged" on Twitter -- and now the two are actually working together again.
TMZ has learned ... Ira DeWitt -- CEO of Notifi records -- has agreed to drop her lawsuit in which she claimed Gill damaged her reputation when he tweeted that she was responsible for leaking an unfinished single from his upcoming album. He also called her some unflattering names.
DeWitt -- who's producing Gill's album -- tells us .. "I'm very happy to put this dispute behind us and I'm confident that [Gill's] loyal fans will be thrilled with the final product."
Gill -- who agreed to go back on Twitter and express regret over the situation -- says, "I'm elated to continue this journey that I've started with Ira and Notifi Records."
He adds, "Through conflict we found a resolution, and not to mention I've found my friend again."