LeAnn Rimes and husband Eddie Cibrian have agreed on an out-of-court settlement with their disgruntled former nanny Gloria Cevallos.

Eddie Cibrian and LeAnn Rimes

Eddie Cibrian and LeAnn Rimes

The 'Can't Fight The Moonlight' hitmaker and the actor - who married in 2011 - fired the housemaid two years ago, but after her departure she filed a lawsuit against her former employees citing mistreatment during her tenure.

Cevallos was tasked with taking care of Eddie's children Mason, 12, and Jake, eight, from his first marriage to the 'Real Housewives of Beverly Hills' star Brandi Glanville.

In documents filed to court, Cevallos claimed that LeAnn, 33, and her husband, 42, allowed other household employees to terrorize her during her tenure and states she was called "a fat old lady" and an "old Salvadoran b****h" by two other women before being sacked.

Eddie's mother Hortensia was also named in the lawsuit, according to TMZ.

LeAnn's mother-in-law was accused of complaining about the state of the house to her son and Cevallos says she overheard Hortensia instruct Eddie to fire a member of staff.

Cevallos has withdrawn the lawsuit but it is not known what the terms of the confidential settlement are.