Niki Lauda claims Lewis Hamilton has now accepted his Monaco Grand Prix defeat to Mercedes team-mate Nico Rosberg, but has warned the situation remains "tricky".
Bad blood between the pair was stirred up on the streets of the principality, with neither man acknowledging the other on the podium following a race won by Rosberg, with Hamilton runner-up.
That followed an incident in qualifying where an apparent mistake by Rosberg led to yellow flags that thwarted Hamilton's bid to claim pole position.
Hamilton then tweeted on Friday he and Rosberg had spoken, claiming they were now "cool" and "still friends".
Mercedes non-executive chairman Lauda maintains the matter has been laid to rest, but knows it could easily flare up again given the head-to-head battle between the duo for this year's Formula One world title.
"Lewis has now accepted Nico won in Monaco and he was second, which is really no shame," said the three-times champion, speaking to the Osterreich newspaper.
"In Montreal (for this weekend's Canadian Grand Prix) we will get together again and discuss everything. After that the fight will go on for the world championship, with both in equal cars.
"But with two alphas currently sitting in the best car it is tricky, although given our superiority that in turn makes the races interesting.
"But we will let our drivers race against each other without restriction because whilst tension is quite normal, it can also escalate. Then I get involved as a mentor."
Lauda is now expecting Hamilton to counter in Montreal, adding: "Nico was clearly faster in Monte-Carlo, but now Lewis will do everything he can to fight back.
"It is a strain on our nerves, but for the fans and the sport there is nothing better."