(TMZ) -- 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 dispute.

Sources close to Yeezy and Hova with direct knowledge of the situation tell TMZ, their lawyers have been trying to settle a $3.5 million dispute Kanye has. As TMZ reported, Kanye had fired off a letter 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.

TMZ was 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 Beyoncé and Blue Ivy at his concert last October. 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."  

TMZ was 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.

TMZ was told the meeting should go down soon, and once it does their dispute will quickly end.

Photo: AOL