Mel Gibson and Oksana Grigorieva have reached a final custody and financial settlement in their long-running bitter legal battle, the Los Angeles County Superior Court announced on Friday.

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, the court said in a statement. The terms and conditions of the settlement would be discussed at a hearing next week on Wednesday, the court said.

A spokesman for the Braveheart film director confirmed the parties had settled.

Gibson and Grigorieva had been in a dispute over the custody of their 1-year-old daughter, Lucia.

The controversial issue of the custody of the couple's 1-year-old daughter will be handled in a closed session, the court said.

Gibson and Grigorieva had a long-running relationship that ended his 28-year-old marriage just months before Grigorieva gave birth to their daughter.

In March, this year, the Passion of the Christ director admitted that Gibson punched Grigorieva during an argument in which he was concerned for the safety of Lucia. The actor pleaded no contest -- the equivalent of guilty -- and was sentenced to three years probation.

The couples have appeared multiple times in court over custody and financial issues with a judge handling their case in Los Angeles.

However, Gibson has never spoken publicly about the case.

Gibson has provided his ex-girlfriend with a four-bedroom, multimillion dollar home,  a vehicle and tens of thousands of dollars a month, Gibson's attorney Stephen Kolodny said in 2010.

Subsequently, the tapes of a furious Gibson telling Grigorieva that she deserved the assault surfaced on Radar Online.

The tapes posted damaged Gibson's career. His manager left, a movie's release was delayed and others refused to work with him.

Roughly one month later, Gibson said in a television interview he regarded the leak of the phone calls to the media as a personal betrayal.