EXCLUSIVE

Kanye West and Jay-Z will be meeting face-to-face soon to squash their latest beef, and if they smoke the peace pipe it will end a lawsuit that looms over their multi-million dollar Tidal dispute.

Sources close to Yeezy and Hova with direct knowledge of the situation tell us, their lawyers have been trying to settle a $3.5 million dispute Kanye has with Tidal. As we reported, Kanye had fired off a letter to Tidal stating his contract with them was over because Tidal didn't live up to his end of the bargain. Specifically, Kanye says he didn't get advances and bonuses that totaled $3.5 mil.

We're told Kanye and Jay have not agreed to settle, and the reason became apparent to everyone. The impasse had nothing to do with their business dispute -- $3.5 mil is peanuts to both of them. They couldn't settle because they each harbor animosity toward the other.

Jay was enraged when Kanye attacked Beyonce at his concert last Fall. Kanye felt Jay should have cut him a break because that was the time he was melting down and just a few weeks after the concert, he was placed on an involuntary psychiatric hold.

As one source put it, "The Generals [Kanye and Jay] have to meet face-to-face. When that happens, the resolving the money dispute is a piece of cake."

We're told Kanye is up for the meeting and Jay is also inclined to meet. It shouldn't be hard. Now that Jay and Bey live in a Bel-Air mansion, they are literally down the street from Kanye and Kim.