Denise Richards and Charlie Sheen finally reached an agreement in their hard-fought custody battle for their two daughters. The undisclosed deal supposedly had both actors smiling, indicating both parties are happy with the agreement.

“It is true that an agreement has been reached between the parties regarding their children. Denise is happy with the agreement and believes that it is in the best interests of their children. Although the parties have agreed that neither one will discuss the specific terms of the agreement, Denise is satisfied that the agreement has dealt with all of her concerns.” This is the statement issued by Jill Fritzo, Richards’ representative, to E! News.

Sheen’s attorney could not immediately be reached, but a source said that the case has been settled in his favour. People close to the actor are saying that Charlie is pleased with the results. Denise was looking to cut into Sheen’s time with their daughters as much as possible. She wanted to stop all overnight visits at the actor’s home and objected to his motion for permission to hire his own childcare providers.

Four months after settlement rumors, which Charlie called “absurd”, the actor has finally something to smile about. He called the previous rumors by a tabloid “derisive fiction.”

The ex-couple continued to have disagreements, most recently about Denise’s decision to let their two daughters participate in the actress’ upcoming reality show for E!. But a judge gave Richards the go signal. Unspecified ground rules were laid out with regard to filming minor children.

Denise filed for divorce on March 2005, after citing infidelity and other marital problems against Sheen. The couple announced their reconciliation later that year but by January of 2006, the Wild Thing star moved ahead with her decision to divorce the actor. The divorce was signed off on November of the same year.

At least, in this latest development between the two, both are satisfied as reported. Because the future of their children is at stake here, it is best if both parties are pleased with the agreement. This is for the kids, not about the former couple.

Charlie Sheen lost the court trial against ex-wife Denise Richards and is now calling for a boycott of the latter’s upcoming E! reality show. The actor took his ex-wife to court in a failed attempt to prevent her from putting their two daughters in her own reality show. Charlie does not want the spotlight on their daughters, as both are still very young.

“Issue a mass boycott,” the actor half-jokingly told PEOPLE at an Academy for TV event for his sitcom, Two and a Half Men.

In January, a judge gave Denise Richards permission to include the ex-couple’s daughters, Sam and Lola, in the upcoming show. The show is being produced by Ryan Seacrest’s company and is as yet untitled. It is supposed to air this summer.

Even though he lost the court trial, Charlie is still publicly opposed to the project. “You don’t go to court and make stands to prevent that if you don’t firmly believe in it,” he said. When asked about the court decision the star replied, ”The world is upside down sometimes.”