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  Twitter: Camille Grammer
  Real Housewives of Beverly Hills star, Camille Grammer

"Real Housewives of Beverly Hills" star Camille Grammer and ex-husband Kelsey Grammer have reached a settlement in their on-going bitter custody dispute.

The former couple have agreed to have joint custody of their two children Mason, 10, and Jude, 7 and the case has ultimately been closed, according to TMZ.

The pair had long been battling out a nasty divorce which was finalized earlier last year, and although the financial aspect remains unresolved the "amicable" custody agreement has reportedly left them both feeling relieved.

"I have a great many mixed feelings about today -- I'm sad for what was, yet excited about the road ahead. What I most hope is that Kelsey and I can improve our communications and truly co-parent our two wonderful children, and I wish Kelsey and Kayte love and happiness in their new marriage," Camille told TMZ with reference to Kelsey's new wife.

While the custodial issues have been resolved, the financial settlement could be more complicated as reports suggest that Camille wants at least $50 million which is $20 million more than Kelsey, 55, had initially offered.

"Camille rejected an offer from Kelsey just before Christmas. He told her through his lawyers that she'd get enough in the settlement," a source previously told Page Six.

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Some reports claim that 42-year-old Camille is still bitter about Kelsey's alleged affair with Kayte and therefore wants to punish him financially which is why she is demanding more money.

"Camille has accepted their marriage is over and that he wants to marry Kayte in January. Camille wants it all over, too. But what she can't accept is how he's parading around Kayte, who looks like the cat who swallowed the canary. Their public make-out sessions are really insensitive because of their kids," the source said.

Although the former "Frasier" star has always denied cheating on Camille during his marriage to Camille, she remains adamant that his affair with his new British wife, Kayte Walsh, led to his decision to leave her.

At one point, Kelsey's attorney had recommended that Mason and Jude be separated with both he and Camille each living with one child, although Camille automatically rejected the idea insisting that her children should remain together.

As per the final custody agreement, the children will both continue living in Los Angeles with Camille, and Kelsey will maintain "meaningful contact" with both of them.