Michael Rapaport -- Squashes Beef with Spike Lee ... But Fires One Last Shot!

The war may be over -- but NY Knicks superfan Michael Rapaport couldn't help but take one last shot at Spike Lee ... and it was pretty hilarious.

Lee and Rapaport had been feuding for months over how to fix the problems in New York City -- Rapaport called Lee a "s**t stain" and Lee said Michael was "stupid."

But Michael recently told HuffPost Live they spoke on the phone and squashed the beef for good.

In fact, when we saw Michael out in NYC Monday ... he was PRAISING Spike as the biggest Knicks fan in the world -- even bigger than he is -- but dropped one last zinger at the famous director.