London, Sept 1 : Mel Gibson has finally reached a financial settlement in his ongoing custody battle with former Russian girlfriend Oksana Grigorieva.

The Oscar-winning actor will now pay Grigorieva 750,000 dollars in three separate installments over a four-year period and share joint legal and physical custody of their nearly two-year-old daughter Lucia.

The new deal is a big blow for Grigorieva, who had turned down his an offer of 15 million dollars in 2010, reports the Daily Mail.

Under the terms of the settlement, Grigorieva and Lucia are allowed to remain in the Sherman Oaks house they currently live in.

Gibson has also promised to pay Lucia the same inheritance that his other seven children are set to receive.

When Lucia turns 18, the property will be sold and the money will be placed in a trust for her.

Gibson and Oksana, who both were in the court for the hearing, have also been refrained from publicly discussing or writing any books or articles about their relationship - or releasing any audio recordings to the media.

If Grigorieva breaches this agreement, she will forfeit the remaining balance of her 750,000 dollars.

The settlement would end a lengthy feud, which made headlines across the world when the Russian musician accused the actor of attacking her. (ANI)