When I do tab completion for a function in Eclipse it highlights whatever code that is next to it and replaces that code with the completion code.
For instance I have some function func already func( int x ). This function returns an int, which can be used by another function, Util.utilFunc.
When I start writing it out, say Util.utilFufunc( int x ) then the func( int x ) part highlights yellow and gets deleted once I complete Util.utilFunc.
Is there a setting where I can prevent this?
You can configure this in the settings for the java editor (Taking from the comment that you want this for Java): Go to Preferences >> Java >> Editor >> Content Assist, then select Completion inserts as an alternative to the default overwrite:

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