The Berejiklian government has abandoned its high-stakes legal battle against casino giant Crown Resorts and developer Lendlease over views from their towering developments at Barangaroo.

Crown and Lendlease said there would be clear views of the Sydney Opera House and Harbour Bridge from their waterfront buildings after the companies reached a confidential out-of-court settlement with the NSW government.

Crown's development at Barangaroo is currently under construction. Credit:Ryan Stuart

The companies launched action against the former Barangaroo Delivery Authority in the NSW Supreme Court last year, in a bid to protect "sight lines" from their developments at Barangaroo South to the harbour.

After a bitter and protracted hearing, the court found in December that the government had breached its contracts with the two companies by not negotiating in good faith about plans for the nearby Central Barangaroo precinct that could have impeded views from their buildings.