A former Metro-North operator who fell asleep at the switch of a train that derailed in 2013 — killing four people — has dropped his $10 million lawsuit against his former employer, according to new reports.

Driver William Rockefeller sued the Metro-North Commuter Railroad in 2016 in White Plains, claiming it acted negligently by failing to install the correct safety signals on the track.

But Rockefeller’s attorney decided to drop the suit after Metro-North countersued, claiming the train operator owed it $10 million — the money it estimated was needed to replace the train that flew off the Hudson Line near the Spuyten Duvil station on Dec. 2, 2013.

“I’d be exposing my client to a potentially significant counterclaim award that would be as devastating to him as the accident was to the families of those impacted by the derailment,” attorney Ira Maurer told The Journal News Tuesday.

The lawsuit was voluntarily dismissed on July 26, according to court documents filed in the Southern District of New York — with both Rockefeller and Metro-North Railroad agreeing to bear the cost of their own attorneys fees.

Attorneys for the railroad and Rockefeller could not be reached Tuesday.

Federal regulators ruled Rockefeller nodded off at the controls of the commuter train which took a 30 mph curve at 82 mph — causing a derailment that killed four people and injured more than 70.

A probe determined Rockefeller had an undiagnosed case of sleep apnea. He will receive a lifetime $3,200-a-month disability pension.

Prosecutors decided not to bring criminal charges against him.

His initial suit had argued Metro-North could have prevented the crash by installing positive train control — a system that would have ­automatically slowed down the train as it approached a curve.

As of 2016, the railroad had paid out $31.9 million in legal costs and settlements with people injured in the crash and relatives of the dead.