Under terms of the custody agreement,, Katherine Jackson will retain guardianship over the children, as Michael Jackson's 2002 will stipulated, lawyers for both parties confirmed.
Rowe, Jackson's ex-wife and mother of his first two children, will have visitation rights for son Prince Michael and daughter Paris. The frequency of visitation will be determined by a child psychologist to be jointly selected, and jointly paid, by both Jackson and Rowe.
The agreement, which will be presented to a Los Angeles Superior Court Judge Monday for approval, does not include an additional compensation for Rowe other than what she has already received in prior settlements with the late singer, the lawyers said.
"The parties engaged in a dignified discussion that resulted in a dignified outcome," said Eric George, Rowe's attorney. "The sole consideration between the parties was the best interests of the children."
L. Londell McMillan and Diane Goodman, attorneys for Jackson said the Jackson family was "pleased this matter is resolved and was handled in a caring, thoughtful and courteous manner."