The 'AM to PM' singer is said to be “delighted” with the deal she and the rapper - who she married in Las Vegas in September 2009 and has eight-month-old daughter Violet with – have agreed without having to go to court to thrash out the details of their separation.
Christina's attorney Randy Kessler told gossip website TMZ: "Ms. Milian strongly believes that peaceful resolution is better for their child and she is very pleased with the settlement and that it was accomplished out of court."
Although the terms of the settlement are being kept confidential, lawyers for each are expected to submit the paperwork to a judge in Fulton County, Georgia in the near future.
The pair have admitted their marriage was over within a few months of their wedding and The-Dream served divorce papers against Christina nine days before she gave birth.
The 32-year-old producer - real name Terius Nash - claimed his marriage was "irretrievably broken" in the papers, which were filed on February 17.
The 'Dip It Low' singer gave birth to daughter Violet just over a week later on February 26.
The couple only announced their decision to split after The-Dream was spotted canoodling on the beach with another woman.
His spokesperson said at the time: "Terius 'The-Dream' Nash is saddened to announce that his marriage to Christina Milian was unsuccessful. The couple reached this decision in late 2009, but decided to keep the news private in efforts to protect their baby daughter Violet. They ask for consideration and respect for their family moving forward."