Elizabeth Hurley is finally free to marry her entrepreneur lover Arun Nayar after he agreed a $1.17 million (GBP620,000) divorce pay out to his estranged wife.

The Indian business tycoon has been locked in a bitter court battle with his 35-year-old Italian wife VALENTINA PEDRONI for years - but

reluctantly gave in to her staggering demand in an attempt to end the feud.

A friend says, "The proceedings have been long and drawn out, but finally they have managed to iron out a settlement.

"Valentina made it clear she would not make it easy for Arun to marry again by agreeing to a quick divorce and she has been true to her word.

"They have been fighting it out legally for years, but at last Arun and Liz will be able to tie the knot."

The Austin Powers actress - who will celebrate her 40th birthday on Friday (10JUN05) - has revealed plans for a star-studded wedding next February (06), but is keeping the exact date and location under wraps.

05/06/2005 14:35