Mel Gibson and ex-girlfriend OKSANA GRIGORIEVA have reached a financial and custody agreement after their long-running court battle according to Associated Press.

Mel Gibson has been locked in a bitter dispute with ex-girlfriend Oksana Grigorieva over the custody of their 1-year-old daughter, Lucia. However, late on Friday night Los Angeles Superior Court officials said in a statement "As the result of a multiday settlement conference, the court announces that Mel Gibson and Oksana Grigorieva have achieved a settlement in their ongoing dispute." Terms and conditions of the settlement were not announced, but a hearing Wednesday will be held to discuss financial arrangements. The former couple have argued for more than a year over custody and financial issues in mostly-secret court proceeding in Los Angeles. The Braveheart star and Russian musician were first seen together in 2009 but since then their personal life has become international news following the actor-director's plea of no contest to the charge of misdemeanour battery against GRIGORIEVA in a deal that allowed him to avoid jail time in 2010.

This settlement comes after a series of personal controversy that has left the Mad Max actor's career in tatters. He was arrested in July 2006 for a much publicised drink-driving incident as well as a tape that was made public in which he allegedly threatened GRIGORIEVA as she held their daughter.