Stella McCartney has urged father Paul McCartney to agree to a financial settlement with his estranged wife Heather Mills for the sake of his physical and mental health.

The News of the World is reporting that Heather will be publicly awarded just £10million from Paul’s estimated £800million fortune but he will then give her £120million privately to prevent the bitter court battle that looks to be on the horizon.

A source told the News of the World that Stella, who is rumoured to strongly dislike Heather, is behind the deal for her father’s sake: “Stella told Paul: ‘If this goes on it could kill you. Being happy is more important than money’.”

The newspaper also reports that Paul has been in therapy since announcing his split from Heather earlier this year and has suffered a heart-related health scare due to the stress of the divorce proceedings.

The source explained that the £120million will include a £3million a year payment to Heather plus an additional £2million support for their daughter Beatrice. It also covers the cost of homes in the UK and the US and £2million towards staff fees and related expenses.

The source added: “It’s a done deal and Paul is relieved.”