The pair dated between 2018 and 2019 and last year British singer-songwriter Twigs filed a lawsuit alleging sexual battery, assault and infliction of emotional distress.
LaBeouf, 35, has denied allegations of physical and emotional abuse.
According to US reports, the parties have now had talks.
During a remote hearing, a lawyer for Twigs — who filed the suit under her non-stage name Tahliah Debrett Barnett — said: “The parties have been engaged in productive settlement negotiations and are in the process of arranging for an early mediation.”
The judge set a follow up court date for December and said if the pair did not reach a settlement, the trial date was likely to be in early 2023.
Earlier this year, Twigs opened up about her relationship with LaBeouf in an interview with Elle magazine.
The 33-year-old claimed it was a “miracle I came out alive”, telling the publication she put it down to plain luck.
Read more: Shia LaBeouf discusses 2017 arrest
“I honestly wish I could say that I found some strength and I saw this light," she said.
"I wish I could say, ‘[It is] a testament to my strong character,’ or ‘It’s the way my mother raised me.’ It’s none of that. It’s pure luck that I’m not in that situation anymore.”
Watch: FKA twigs working on martial arts TV show