Britney Spears has reached a "six-figure" settlement with her former manager Sam Lutfi.

Britney Spears

Britney Spears

The 'Toxic' hitmaker reportedly reached an agreement with her ex-pal late last week following a seven-year legal battle which started in 2009 when he filed a defamation case against the singer and her family, claiming they were blaming him for her downfall.

Sources told TMZ that Britney paid Sam a sum "in the low six figures" but less than the estimated $500,000 it may have cost in legal fees.

A judge threw out his defamation case in 2012 but he appealed and a trial was due to begin in Los Angeles next month.

He claimed in court documents filed at the California Court of Appeals in April, where he was also said to be after "unpaid earnings", that she had previously "struggled with drug abuse" and ended up sleeping in a parking lot as a result.

The documents claimed Sam had advised the pop star about "the importance of getting clean", but Britney's family insisted he was the one who supplied her with drugs.

The papers further stated the 34-year-old singer asked Sam to manage her and he accepted on two conditions; that she would let him assemble a team, and stop abusing drugs. He also insisted on being able to use drug sniffer dogs to make sure she stayed sober.

Despite Britney's promises to get clean, the judges said she continued to use drugs and the situation got so bad she ended up sleeping in a parking lot on the day she lost custody of her sons, Preston, 10, and Jaden, nine.

The papers stated Britney and Sam met in 2007 when she was embroiled in a divorce from then-husband Kevin Federline, a custody battle over their sons, and was estranged from her parents.

In 2008, Britney was admitted to a psychiatric ward on an involuntary hold.

She was then placed under the conservatorship of her father Jamie Spears and attorney Andrew Wallet and since then, has worked hard to return to health and get her career back on track.