The singer-and-actor submitted an order of dismissal in Tennessee on March 11 - just five months after he and wife Tish had requested their marriage be legally dissolved - in which he has agreed to foot the bill for the legal work already carried out.
According to website RadarOnline.com, the legal documents read: "The Plaintiff does hereby take a voluntary nonsuit in this case as the parties are attempting a reconciliation and the same shall hereby be dismissed without prejudice.
"Costs shall be taxed to plaintiff."
Meanwhile, Billy Ray - who has blamed `Hannah Montana` for destroying his relationship with daughter Miley, and said he feared she was out of control - has now claimed his relationship with the 18-year-old signer-and-actress is better than ever.
Asked on TV show `The View` how his relationship with Miley is now, he said: "The best it`s ever been. I feel like I kind of got my Miley back in a way. I feel like we are the daddy and the daughter that we were before `Hannah Montana` happened. Our communication, we have laughed a lot in the last couple of days."
Speaking about his decision not to file for divorce, Billy Ray - who also has another daughter Noah, 10, and a son Braison, 16, with Tish - revealed in a pre-recorded interview his family are closer than ever.
He said: "I`ve dropped the divorce. I want to put my family back together. Things are the best they`ve ever been."
Country singer Billy Ray married Tish in December 1992 and as well as having three children together he adopted Tish`s two kids, Brandi and Trace, from her previous marriage.
He also has a son, Christopher, from his relationship with Kristin Luckey.