The Oscar-winning actress tells The New York Times she gave up the one-bedroom walk-up in May because it was in poor condition and she was spending less time in New York.
The paper had reported her landlord had filed a lawsuit seeking to evict her from her $1,048 rent-stabilized apartment.
The lawsuit claimed she didn't use the apartment as her primary residence as required by rent-stabilization rules.
Dunaway says she got the apartment from her mentor, playwright William Alfred, who died in 1999. She says she's been working on donating his possessions to Brooklyn College, where he did his undergraduate work.
The landlord's lawyer says Dunaway offered to hand over the apartment keys on Wednesday.