The LA Confidential star has squashed rumours that the two did not get on after some joke tweets from Pearce went viral.
In since deleted tweets, Pearce retweeted an account urging people to look at a Blanchett photoshoot to which he replied "no thanks" and he also called the Oscar winner's recent victory at the Critics' Choice Awards a "fascinating choice".
Pearce has now clarified his stance on the Tar actor, writing: "Fear not. No beef at all. I was merely being sarcastic. I adore Miss CB. She's incredible.....One of our best!"
Pearce had previously backed Ana de Armas for her performance in Blonde to pick up gongs this awards season, tweeting: “Please be Ana De Armas!!!! Incredible performance!”
There was speculation a rift existed between the pair due to comments Pearce made in 2008 about appearing on stage with Blanchett.
Pearce was asked if he'd appear in a production of Poor Boy at the Sydney Theatre Company and relating to Blanchett, said not “unless she wants to pay me what she earns”. If she does it’ll be the most the [Sydney Theatre Company] ever paid an actor, I guarantee.”
Blanchett did indeed pick up an Oscar nomination yesterday for her performance as composer Lydia Tar. She was nominated alongside Michelle Yeoh, Michelle Williams, Ana de Armas and Andrea Riseborough.
It is Blanchett's eighth Oscar nomination and she has previously won twice for Blue Jasmine and The Aviator. She was also nominated for her performances in Carol, Elizabeth, Notes on a Scandal, I'm Not There and Elizabeth: A Golden Age.
Blanchett has already won the Golden Globe for Best Actress in a Drama for her performance in Tar.
Watch below: Guy Pearce insists Cate Blanchett is 'incredible'