Crouching Tiger, Hidden Dragon star Zhang Ziyi has reached a settlement with China Free Press editors and journalist Weican Null Meng over a story that suggested she had received money in return for sexual favours.

The actress sued the U.S.-based publication and the writer for defamation in 2012 over a report that claimed she was a high-priced prostitute, and earlier this year (13), she demanded the defendants give up the sources who had claimed she had been hired for sex by Community Party officials.

After several months of mediation, the two parties informed a court in Los Angeles on Thursday (12Dec13) that they had reached a confidential settlement in principle, according to The Hollywood Reporter.

An attorney for China Free Press confirmed the news but wouldn't reveal the terms.