Paul McCartney and Heather MillsPaul McCartney and Heather Mills are said to have agreed on a settlement at the last minute in court on Friday afternoon.

After the pair had failed to come to an agreement during the first four days of talks, Court 34 at the Royal Courts of Justice was booked for a second week of hearings on Friday - but the parties are said to have reached an ‘in principle’ settlement just before the session ended.

Reports claims Heather will receive a £20million lump sum payment then between £2.5million and £2.7million per year for the next 14 years as child support payments for their currently four year old daughter Beatrice. Paul is also said to have agreed to Heather’s demands for a staff (including a housekeeper, nanny, personal trainer and 24-hour security personnel), a travel budget and to pay her £2million legal bills.

A source told the Daily Mail: “They have agreed on all points. Nothing much has changed this week. There was a deal at the beginning, but it was a complex one.”

“There have been a few tweaks to the agreements, but those have been mostly changes Heather wanted made.”

Despite the agreement, both parties are expected to return to the courthouse on Monday, with the source adding: “Heather has had no legal representation throughout recent weeks. If a deal has been reached, [the presiding judge] Mr Justice Bennett has to be sure of a few things to bind Miss Mills to the settlement. He needs to be sure she knows of and understands all the details of the agreement.”

“He also must be sure that she not feel under duress to sign it.”

“Also, despite Heather having been guided legally in court all week, Mr Justice Bennett will want to give Heather the weekend as one final chance to take legal advice on the final settlement. Whether she does is another matter. It all seems fairly cut and dry. But the judge will want to offer her this final opportunity.”

But the prospect of a court visit tomorrow isn’t said to be stopping Heather having a celebration party tonight.

A source close to the former model told the News of the World: “The party is a big thank you to all the people who stuck by her. It is also a final dig at Paul - who spent months telling her she wouldn’t get his money.”

“He was optimistic the payout would be low, and this settlement would have hit him hard. But Heather always felt she deserved a huge payout.”

The couple were married for four years until separating in June 2006. Their divorce is expected to be finalised over the next few months now the financial settlement and custody arrangements have been agreed.