The Sun claims that the two feuding pop legends found themselves eating in the same swanky eatery in the south of France.
A source said: "Elton goes to the Petite Maison for dinner fairly regularly as it's near his villa in Mont Boron.
"But Madonna was also there for a bite before her show, which was down the road and didn't start until around 10.30pm.
"Just as he was leaving, he went over to talk to Madonna and they were laughing and smiling."
"They even hugged each other."
Things have become increasingly heated between the pair recently with Elt hurling the C word at Madge and comparing her to a stripper.
But Madge recently declared at one of her gigs that she had forgiven him for his comments.
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