A week after budget concerns almost knocked the "Ali" biopic down for the count, a compromise has been reached between executives at Columbia Pictures and director Michael Mann that will enable Will Smith to lace up his gloves for the role of boxer Muhammad Ali.

"Variety" reports that Mann, Smith, and producer Jon Peters have agreed to cover a portion of any cost overruns on "Ali," which is currently budgeted at $105 million.

Columbia Pictures has also brought in a new financial partner, Initial Entertainment Group, who will impart $65 million toward the "Ali" budget in return for German rights to the film.

"Ali" is now scheduled to begin shooting in January, and Mann also plans to eliminate several days of on-location work in New York City as part of the compromise with Columbia Pictures that was reached over the weekend.

Last Thursday, a media spokesperson for Sony Pictures, Columbia's parent company, stated that the film was "in limbo" following

the initial round of meetings on Monday and Tuesday in Los Angeles.

At that time, a source close to "Ali" told MTV News that if Columbia passed on the film, Smith and Mann would likely shop the project around to other studios, as Smith had already made a mental (and physical) commitment to getting the movie in the ring.

After months of speculation, Smith finally inked a deal to star as the loquacious pugilist back in May (see "Will Smith Finally Signs On For Ali Role"), and has even put all music-related projects on hold while he trains for the role.

During a New York City press junket earlier this month to promote his upcoming film, "The Legend Of Bagger Vance," Smith talked excitedly about how he's been getting in shape, and in character, for "Ali."

"I'm not doing anything with music," Smith said.

Aside from training, Smith has also bulked up in order to more closely duplicate Ali's heavyweight physique.

"At this point, I'm about 217 pounds," he said, "and that's a good 20 pounds heavier than I've ever been. In 'Independence Day,' I was only 195, so I'm bigger than I've ever been. I'm stronger than I've ever been, and I'm ready to take a real fight." [RealAudio]

As part of the training, the actor/rapper has even gone toe-to-toe in the ring with Sugar Ray Leonard, but admitted that despite his competitiveness, he wasn't able to land a glove on the former middleweight champion.

"I'm in the best shape of my career," Smith said. "I've got a great guy named Darryl Foster working with me day-to-day in the gym. Angelo Dundee is overseeing my training. Ali comes down to the gym a couple of times a month just to check on my jab. I sparred with Sugar Ray Leonard the other day, so my training is ridiculous. [RealAudio]

Smith can next be seen alongside Matt Damon and Charlize Theron in the golf film "The Legend Of Bagger Vance," due out on November 3.