NEW YORK — Blake Lively is willing to drop her emotional distress claim against her “It Ends With Us” director and co-star Justin Baldoni, who she alleges sexually harassed her on-set and subsequently launched a smear campaign.

Baldoni’s lawyer Bryan Freedman told TMZ that the “Gossip Girl” star, 37, is on board so that she won’t have to release requested medical records to the “Jane the Virgin” alum’s legal team.

Now, the Baldoni-Wayfarer camp is asking New York federal Judge Lewis J. Liman to either order Lively to send over all requested documentation or dismiss the claims with prejudice, which would prevent her from refiling in the future.

Lively’s legal team on Monday asked Liman to oppose such a motion, dismissing the move as a “false and plainly improper public relations stunt,” and requests to withdraw the claims without prejudice, which would enable her to eventually refile if she so chooses, according to a filing shared with the Daily News.

They described Lively’s willingness to withdraw the claim as a “good faith” desire to “streamline her case” and dismissed allegations that she “‘refused’ to disclose medical and mental health information,” as that would only be relevant to the claims she’s willing to withdraw.

“We are doing what trial lawyers do: preparing our case for trial by streamlining and focusing it; they are doing what they do: desperately seeking another tired round of tabloid coverage,” Lively’s lawyers, Esra Hudson and Mike Gottlieb, said in a statement shared with The News.

Lively in late December filed a complaint and lawsuit accusing Baldoni of sexual harassment and launching an alleged online hate campaign. Denying Lively’s accusations, Baldoni filed a $400 million defamation lawsuit against the actress, husband Ryan Reynolds and publicist Leslie Sloane.

The case is slated to head to trial in New York in March 2026.

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