A court commissioner here has formally approved a settlement in the custody dispute between pop diva Britney Spears and her ex-husband Kevin Federline.

A spokesperson for the Los Angeles Superior Court told AFP a reported agreement reached by lawyers acting for Spears (26) and Federline (30) last week had been inked by commissioner Scott Gordon.

Federline's lawyer, Mark Vincent Kaplan later confirmed the deal had been approved, heading off the possibility of a potentially traumatic trial, and leaving his client with custody of Sean Preston (2) and Jayden James (1).

"It's a great relief to have this two-year ordeal behind him," Kaplan said of Federline. Under the settlement, Spears must pay Federline's legal bill of $250 000 as well as increased child support of $20 000 a month. Previously Spears had paid $15 000 a month.

Spears continues to have visitation rights, which could be widened at a later date. Spears currently has monitored visitation with her sons two days a week and one overnight stay.

Her visitation rights were severely restricted this year amid spiraling personal problems and fears for the singer's mental health.

But the pop star has appeared to have been getting her life back on track in recent months, after she was twice rushed to hospital in January for treatment in a psychiatric unit.

Spears, one of the most successful pop stars of her generation, had been locked in the custody saga with Federline since the couple split in 2006.

She lost custody of her children last October after she failed to submit to random drug testing as demanded at an earlier hearing where the court ruled she was a "habitual and continuous drug user".

Spears shot to superstardom in late 1998 with her smash-hit debut album 'Baby One More Time', which she followed with another chart-topping success the following year, 'Oops! ... I Did It Again'.