CHICAGO, Apr. 4 – The Process Church of the Final Judgment has agreed to drop its second suit against those involved in the publication of a book on convicted murderer Charles Manson.

A $1.25 million libel suit against the publishers of Esquire Magazine was dismissed Monday in Circuit Court.

The church earlier agreed to an out-of-court settlement in a $1.5 million suit it filed against the E.P. Dutton Co., publisher of “The Family – The Story of Charles Manson’s Dune Buggy Attack Battalion,” and its author, Ed Sanders.

The church, a religious sect with headquarters in Chicago, agreed to drop the suit against Esquire after the magazine agreed to publish an explanation of revisions to be made in the book.

Esquire published extracts of Sanders’ work in November, 1971.

In its suit, the church charged that “false and defamatory material concerning the church and its religious activities” had been published.

The company, in its settlement last month, agreed to rewrite the book eliminating all references to the church since it said statements contained in it about the church “were not substantiated.”

The publishing firm also agreed not to print more copies of the book in its present form.

The suit against Dutton named Sanders as a codefendant.