Cheryl Walker was due to appear in court on Thursday (27.03.14) to try to secure guardianship of Meadow Rain Walker, but the hearing was postponed after she and the 15 year old's mother, Rebecca Soteros, resolved their issues.
A source told E! News: "As a result of a family meeting yesterday, an agreement has been made between the parties and attorneys in the case. The good news is that things are getting better for everyone involved."
Meadow, who will inherit her late father's entire $25 million fortune, had been living with Cheryl since August and when Paul passed away in November, Rebecca flew from Hawaii to stay with the pair until things stabilised, but Cheryl reportedly decided to fight for custody because she thought Rebecca was an alcoholic.
The insider added: "Meadow will live with her mother and they will be getting a place [in California] and the agreement does involve both the guardianship and estate issues."
The teenager is said to be "happy" with the agreement and Cheryl "won't gain any control," despite 'The Fast and the Furious' star stating in his will that he wanted his mother to be his daughter's guardian.
Cheryl's lawyer, Bela G. Lugosi, also confirmed: "Parties involved are trying to resolve whatever the issues are so that this matter goes off calendar."