The 14 year old's sister Shanelle Gray was granted temporary guardianship of the actress in October (12), amid claims the teen was being physically and emotionally abused at home by their mum Chrystal Workman.
The family has been locked in a bitter custody battle ever since and the case was due to head to trial on Wednesday (12Dec12), but an agreement has now been reached, according to the Associated Press.
Winter will continue living with her sibling until at least their next court date on 29 March (13) and her dad, Glenn Workman, who is estranged from his wife, will look after her finances.
The decision comes nearly a month after the TV star's father filed legal papers objecting to Shanelle's guardianship, stating, ""I am physically, emotionally, and financially capable of caring for my daughter, without limitation. No evidence has been produced that suggests any detriment to Ariel associated with my father-daughter relationship with her... I am a frugal and modest person with a moderate income who doesn't need Ariel's income to survive.""
Meanwhile, Crystal has vehemently denied the accusations against her, telling Celebuzz.com, ""I love my daughter very much. I would never abuse her in anyway and I have always tried my best to always protect her and do what is right for her.""
The embattled mum insists problems between her and her daughter began when she spoke out about the young actress' romance with an 18-year-old boyfriend.