Just when we all thought peace was about to reign, it heats up again. Birdman's legal war with Lil Wayne is back to square one, because Weezy continues to drop major disrespect on his ex-mentor's name.
Sources close to the situation tell us ... lawyers for the 2 camps were close to reaching a deal -- one meeting away, in fact -- when Wayne publicly dissed Birdman by changing the lyrics in "I'm Me" from a Cash Money shout-out to a Jay Z shout-out.
We're told Birdman has his own beef with Jay, which made Wayne's diss sting even more. Lil Wayne's "Suck my d***!" at that same show didn't help either -- so he pulled the plug on negotiations.
The bottom line, we're told, is if they're ever gonna settle the $51 million lawsuit ... both sides need to stop jawing in public.