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They do cancel out and you just roll once.
Technically, what you do is roll the dice, and whatever the result is you reroll it.
Say this situation is what you described. You wound, I have to roll a save.
I have a 4+ save. If I fail it I can reroll. If I pass your rule says I have to reroll it. Therefore, no matter what I roll the first time I will reroll it. So the 2nd roll is what counts(and no reroll is applied)
The end result is I roll once with no rerolls of any kind as both abilities cancel out.
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