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In a shocking new development, OK! has learned exclusively that Britney Spears has ended her battle to win back custody of her children, Sean Preston and Jayden James, from ex-husband Kevin Federline.

In an exclusive interview with OK!, Kevin’s attorney Mark Vincent Kaplan says both Britney and Kevin reached and signed off on a settlement in their custody case today.

Kaplan tells OK!, "At about 8 p.m. PT, a final settlement in the Kevin Federline-Britney Spears custody case was signed. All parties have agreed to the following: Kevin will retain sole legal and physical custody of Sean Preston and Jayden James. Britney will continue to have visitation rights which may increase over time. The agreement will be presented to the court in the morning for approval by the commissioner."

Kaplan adds, "Kevin is ecstatic and the boys are thriving."

Britney, who remains under the legal conservatorship of her father Jamie Spears, lost custody of her sons to Kevin last October. At the time she had visitation privileges but they were severely restricted following her January hospitalization for psychiatric evaluation.

She currently has monitored visitation with her sons two days a week and one overnight.

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