Britney Spears [ tickets ] and Kevin Federline reportedly have reached a custody agreement that gives Federline full legal and physical custody of their two young sons while Spears continues to have visitation rights.

The resolution to the custody dispute, which was scheduled to go to trial next month, was in the works on Friday (7/18), however Superior Court Commissioner Scott Gordon had not signed off on it, a court spokesperson told the Los Angeles Times.

Federline gained custody of the couple's two toddlers, Sean Preston and Jayden James, in October after Spears began exhibiting erratic behavior.

The pop star, who was hospitalized for psychiatric problems in January, currently is allowed monitored visits with the boys including overnight stays. Her attorney told reporters Friday that Spears is "doing well."