Kelsey Grammer's estranged wife has reportedly rejected a $30 million divorce settlement.

Camille Donatacci - the 'Frasier' star's third spouse, who filed for divorce in July after 14 years of marriage - is said to be unhappy with the offer as it does not include alimony or child support for their two kids Mason, nine, and six-year-old Jude.

A source told the New York Post newspaper: "She rejected an offer from Kelsey just before Christmas. He wasn't offering child support or alimony, and told her through his lawyers that she'd get enough in the settlement.

"Because there is no prenup, Camille was certain she'd get up to $50 million, because she's a partner in his TV company and entitled to half the money he made from shows, including 'Frasier,' while they were married."

Though he is set to lose a chunk of his Fortune to his former spouse, Kelsey, 55, has reportedly refused to draw up a prenuptial agreement between himself and his current partner, 29-year-old Kayte Walsh, who he is expected to tie the knot with as soon as his divorce from Camille is finalised.

A source told gossip website PopEater: "Kelsey is deeply in love with Kayte and can't imagine spending the rest of his life with any other woman in the world. He knows she's the one and wouldn't insult her by asking her to sign a prenup even though his third divorce is going to cost him about $50 million.

"Kelsey doesn't care about the money. He never has. This is about being happy. Finding someone who is your best friend. He doesn't want to wait any longer."