The singer told Lopez Tonight during an interview on Tuesday that he has known Busey for "a very long time" and considers the actor to be a friend.
"I saw him at an Oscars party before Apprentice started and when I saw him, he turned to me and said, 'Are we still friends?'" he told George Lopez.
"I said, 'Absolutely Gary' and gave him a hug."
The 'Bat Out Of Hell' star, who exploded at Busey during an art challenge earlier this season when he thought the actor had taken his supplies, went on to say that Busey contacted his Team Backbone colleagues after his firing last week.
"He sent letters to myself, John Rich and Lil Jon saying, 'I'm sorry I let the team down. I apologise to you. I still want to be friends. Here's my phone number, let's keep in touch...' So I am friends with Gary."
As for his televised "meltdown" over thinking Busey had taken his art supplies, he said: "We all have moments in our lives that we regret after it happens and that just happens to be one of those."
Busey was fired from Celebrity Apprentice last Sunday after project managing the men's team to a loss in a cooking-themed episode, which saw the other contestants criticising his management skills in the boardroom.
He later suggested that Team Backbone should have been called Team 'Backstabbers' because they wanted him out of the competition, although admitted that he was thankful to them for their honest critique.
Celebrity Apprentice airs Sundays at 9/8c on NBC.
Watch more of Meat Loaf's interview with George Lopez below: