Issues between two coworkers are always settled in group discussions. Where each vent about the issues. Then the group comes to with a collective bargain. As a peace agreement.
Anything else is hostile and one sided. These terms should never be reached separately. Both sides will feel their getting the sort end of the stick.
The only way this kind of settlement would work is when the issue disappears, but most likely is not affective. It all depends on the manager.