Courtney Love and Dave Grohl have ended their feud by placing a $10,000 bet over strippers.

The pair - who hadn't spoken for 20 years since the death of Courtney's husband, Dave's Nirvana bandmate Kurt Cobain - were seen laughing and hugging at a party for Danny Clinch's photo book 'Still Moving' at the McKittrick Hotel in New York on Monday (13.10.14), much to the astonishment of other guests.

A source told the New York Post newspaper's Page Six column: ''Courtney and Dave were nose-to-nose at the table in the back, laughing, crying and hugging. It's nice to see those two burying the hatchet for real. Courtney doesn't really drink, but she and Dave did tequila shots.

''They were very intense with each other. People were surprised . . .  Michael Stipe looked like he couldn't believe what he was seeing. Then Courtney and Dave were heard making a 10-grand bet on who could get the most strippers at Scores.''

However, Courtney went home from the party, while the Foo Fighters rocker went on to the famous strip joint and spent a reported $10,000 on tequila, champagne and private dancers.

A source said: ''Dave was a real gentleman and very generous. The dancers loved him, he was a really good tipper.

''If he and Courtney had a competition over strippers, he would have definitely won.''

However, the 50-year-old rocker insists the bet is ''still on'' and has vowed to win.

She tweeted yesterday (14.10.14): ''the bet is still on @davegrohl we'll do the wager out west and I swear I'll win! (sic)''

The two stars feuded for year over the rights to Nirvana's music and finances but relations thawed this year at the Rock and Roll Hall of Fame induction ceremony in April.