Variety reports that Washington and the studio have come to terms on a deal that will put the project back on its fast track in the fall.
Tony Scott is directing the film, about a runaway train, which has resumed preproduction in Pittsburgh.
Washington had been attached since April to play a veteran engineer who jumps into a locomotive with a young conductor (Chris Pine) to stop an unmanned train loaded with toxic cargo.
Mark Bomback's script is based on true events.
Earlier this month, it was reported that the project had slowed when Fox insisted that the budget be brought close to $90 million, requiring salary concessions from Washington and Scott.
Sources told Variety that the studio asked Scott to shave $3 million off his upfront salary and Washington to shave $4 million off his. Washington declined and he started eyeing other jobs for the fall.
Scott and Washington, off in Europe to promote their latest collaboration The Taking of Pelham 123, continued talking, and Washington's reps and Fox found a way to compromise on the deal.