The friendship has already been damaged beyond repair, no matter how much you want to salvage it. You know what he did...he KNOWS you know what he meant. He can squirm out of it all he likes, but it is not the truth. There is now this big ole pink elephant in the room when you two are together...and it will be there with his GF now too. She won't 100% trust him with you alone (I'm not saying she wouldn't trust you. I'm saying she's got a little niggle in her brain to doubt.)
Because she knows.. you should tell your FH. He should not be left in the dark regarding this. Be sure to tell him you confronted your guy friend who has said he didn't mean anything by it. (Your FH will know better too...and he won't let this guy be around just you.)
My DH used to work in a rape crisis center. I know that this is really minor to you here...but the thing is...one of the gals he counselled after she was attacked, situation sounded remarkably like yours. Good guy friend, hit on the gal. She turned hm down, but because he was SUCH a good friend of the family, she didn't tell anyone because she didn't want to tear up their tight little unit. Well, because of his relationship, he had access to her home, and that's where he attacked her.
Will this guy? Probably not...but do NOT give him opportunity. He already proved he was a very poor judge of character. Do not let him spend the night at your house, and don't go on any couples weekends with that couple. He's not to be trusted. And yeah...your best guy friend wants to get into your pants.