Terms of the financial arrangement were not disclosed, but the rehabbing singer will pay the back-up dancer - who she slugged in the face prior to entering a treatment facility in Illinois - a certain amount in order to avoid a lawsuit.
Said Donald Karpel, Welch's lawyer, TMZ: "The parties are satisfied and the dispute has been resolved amicably and completely."
The incident with Welch was reportedly rock bottom for Demi. She sought treatment, remains in seclusion and will hopefully return to public life a stronger, happier individual.
