10:47 AM PT -- A spokesperson for the D.A.'s office tells us, "The proposed settlement announced today in Matthew Hutchins’ wrongful death case against Rust movie producers, including Alec Baldwin, in the death of Halyna Hutchins will have no impact on District Attorney Mary Carmack-Altweis' ongoing investigation or her ultimate decision whether to file criminal charges in the case."
The statement continues, "While civil suits are settled privately and often involve financial awards, criminal cases deal only in facts. If the facts and evidence warrant criminal charges under New Mexico law then charges will be brought. No one is above the law."
Matthew Hutchins' settlement in his wrongful death suit against Alec Baldwin and others from the set of "Rust" means production is back on ... but it doesn't mean the ongoing criminal investigation into the D.P.'s death is coming to a halt.
Sources connected to the investigation tell TMZ ... the settlement will in no way affect the criminal probe ... a probe in which authorities say Baldwin and others could be charged.
The Sheriff's Dept. tells TMZ, once the investigation is completed the file will be forwarded to the District Attorney, who will then decide who, if anyone, will be prosecuted.
As we reported, Baldwin and co. are picking up where they left off in the movie that claimed Halyna Hutchins' life last year -- because the actor's continuing in his lead role ... and other cast members will continue as well.
Halyna's husband Matthew announced he's no longer pursuing a lawsuit against AB or the "Rust" producers, saying they've reached terms and he's agreed to drop his wrongful death suit. Matthew has also signed on to be an executive producer for the project.
Attorney Jason Bowles, who is repping on set armorer Hannah Gutierrez-Reed, tells TMZ ... Hannah is grateful this settlement will benefit the Hutchins family -- adding they're hopeful the D.A.'s office will opt out of pursuing criminal charges.