Leann Rimes has rejected a counter civil settlement offer from Kimberly Smiley, who she is suing for invasion of privacy.

The 30-year-old singer has allegedly dismissed the deal because it did not come close to many of the key concessions she feels she is entitled to and is moving forward with her lawsuit, which accuses the school teacher of illegally recording a phone call between them in March 2012, which was then made public, and she and her daughter Lexi of bullying the singer on Twitter.

LeAnn declined the counter offer after Kimberly previously rejected her offer to settle by publicly apologising to the singer, who reportedly has no interest in financial compensation.

LeAnn also wanted Kimberly to admit to inciting others to attack her online.

An insider told gossip website RadarOnline.com: ''LeAnn proposed a settlement basically forcing Kim and Lexi (her daughter) to apologise to LeAnn.''

Kimberly countered with a different settlement offer, which was forcefully rejected by LeAnn's legal team because it would force her to give up the option to pursue other solutions.

The singer claims she was abused online because of her affair with her now husband Eddie Cibrian, while he was still married to reality TV star Brandi Glanville, and called Kimberly last year to discuss the alleged bullying.

Kimberly previously claimed the singer called her ''rude'' and ''berated'' her on the phone.

LeAnn's lawsuit claims Kimberly repeatedly ''insulted, taunted and provoked Ms. Rimes'' during the phone call earlier this year, but the accused insists it is a ''complete lie''.

Meanwhile, criminal charges are looming against Kimberly as the Sheriff's department recently finished its investigation and turned the case over to the district attorney, recommending that she be prosecuted.

The criminal investigation could lead to charges in the next few weeks and depositions will be scheduled in the civil case soon.