Demi Lovato close to settlement

Demi Lovato is close to reaching a settlement with the dancer she has been accused of punching.

Lawyers acting for the troubled star - who is currently in rehab receiving treatment for "emotional and physical issues" - have entered negotiations with Alex Welch`s attorneys, with both parties hopeful to reach an amicable conclusion to the dispute.

Alex`s lawyer Donald Karpel said: "Alex is seeking a settlement, an apology from Demi and a donation made to a charity of her choice."

Donald is currently working with the firm representing Demi and says he has "faith" an amicable settlement will be reached soon.

A spokesperson for the `Sunny With A Chance` star told RadarOnline.com: "Demi`s attorneys have had an initial discussion with Mr. Karpel. They are exploring the possibility of an amicable resolution of this matter. We do not plan on making further public comments during this process."

Alex, 21, had been planning to give an interview about the incident, in which she suffered a black eye, but was asked by Demi`s representatives to hold off until the case is negotiated.

She said only: "I hope to get this settled and put this behind me."

Recalling the alleged attack, Alex recently revealed it happened after Demi had been told off about her behaviour while on the Jonas Brothers tour and, believing one of the dancers had complained about her, the teenage star took them into a room and threatened them, saying: "If I find out who told on me ..."

However, Alex insisted she had no idea what the star was referring to and was stunned when Demi approached her on a plane the following day and punched her.

She said: "We were on the plane with the Jonases having this awesome time and I didn`t get a call or text from Demi or a, `Hey, you got a problem with me,` nothing. And she walks up and punches me and literally walked away and got in her seat.

"No one should walk up and do that and brush it over, it`s not right."

Demi left the tour immediately after the incident and checked into rehab.

sections: Celebrities