Lawyers for Michael Jackson's mother say she will share custody of the late singer's children with his nephew.
Katherine Jackson, 82, met her grandson TJ Jackson, 34, on Thursday and agreed that joint custody is in the best interests of the children, her lawyer, Perry Sanders, said in a statement.
He added: "Mrs Jackson is extremely pleased with the prospect of enjoying the pleasure of raising Michael's children without the day-to-day tedium of items such as managing the large staff that goes with such a high-profile family.
She wanted to "focus her attention on being a grandmother and raising Michael's children", Mr Sanders said.
The new custody arrangement will be formalised early next week, Mr Sanders said, ending the family's dispute over the custody of 15-year-old Prince, Paris, 14, and Blanket, 10.
Under the arrangement, TJ Jackson, son of Michael's brother Tito, would oversee the children's schooling as well as the household staff and security.
Katherine Jackson would keep control of the children's financial allowance of \$70,000 (£45,000) per month from the singer's estate, according to the statement.
"She is eager to simply enjoy her great relationship with these children, while deeding over some of the stressors that go hand in hand with being a guardian," Sanders pointed out.
Superior Court Judge Mitchell Beckloff granted TJ temporary custody of the children on Wednesday, after doubts about Mrs Jackson's whereabouts emerged.
She dropped out of sight for 10 days and it emerged she had been at an Arizona spa since July 15 with her daughter Rebbie and other relatives.
She had not spoken to her grandchildren during that time, prompting grand-daughter Paris to tweet her concerns.
Mrs Jackson was appointed guardian in 2009 under the terms of Michael Jackson's will following his death at the age of 50.
The document grants TJ custody of the children, if Katherine Jackson dies while they are still minors.
Judge Beckloff has also ordered probate court investigator Cary Ornelas to prepare an investigation concerning the status of the three children and the elder Jackson.
Mrs Jackson earlier told ABC News that she was hurt by the court ruling transferring custody and said it was "based on a bunch of lies".
"I am devastated that while I've been away, that my children, my grandchildren, have been taken away from me, and I'm coming home to see about that," she said, reading from a prepared statement.
She denied the suggestion made in court and in court papers to support TJ Jackson's appointment that she was being held against her will.
"I am here today to let everybody know that I am fine and I am here with my children," she said.
"My children would never do a thing to me like that, holding me against my will," she said while her children Randy, Janet and Rebbie were seated next to her. "It's very stupid for people to think that."
The events of the last two weeks arise from divisions in the family over Michael's will which some of his siblings claim is a fake. It left his assets to his children and to charity.
