The income from the property is split, with 75 per cent going to Mr Taylor's trust and 25 per cent going to the beneficiaries of the Beverley Mexted trust.
It is understood Mexted and his siblings had claimed their trust had not received proper income from the commercial property.
The matter was due to be heard in the High Court at Auckland tomorrow but will not now go ahead as the matter has been resolved.
The agreement between the parties is confidential.
Mr Taylor said the matter was "completely finished" and would not comment further.
His lawyer, Bruce Stewart QC, declined to comment.
Mexted and his lawyer Jan McCartney SC could not be reached for comment.
THE MEXTED FILE
* 72 All Black matches, including 34 tests, between 1979 and 1985
* Captained All Blacks seven times and scored 21 tries
* Married beauty queen Lorraine Downes in 1986. The couple separated in 1999.
* Mexted's father Graham, who died in 2009, also played a test for the All Blacks.