The stormy waters between Paul McCartney and Heather Mills are finally beginning to calm down.

It has been said that Paul has agreed to pay his estranged wife' $2,500-a-week rent on her new home.

The 64-year-old Beatles legend gave in to the former model's demands that he cover the cost of her home in London's Regent Park, where she will live with their three-year-old daughter Beatrice.

The rent agreement, which according to one friend, was "negotiated in court," will remain in place until a formal divorce settlement is reached.

Heather's friend added to Britain's Daily Mirror newspaper, "Heather says Paul has to pay for their accommodation. She thinks the divorce will be settled within the year."

Heather, 39, is reportedly still fuming over the musician's refusal to reinstate her bodyguards following death threats.

Another friend of the former model said, "She is absolutely furious and, for her, it's the final straw. She said she never, ever wants anything to do with him again. When is comes to handing Beatrice over, the nanny or someone else will take care of that."

Meanwhile, Paul and Heather are allegedly set to battle it out on rival TV talent shows. Paul has been invited to appear as a guest judge on "American Idol," while Heather is hoping to take part in "Dancing With The Stars."

The talented singer is rumored to have been offered $250,000 for just one episode of the hit show.

A friend said, "It would put him back on the box in the U.S."

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