Kelsey Grammer's estranged wife is believed to have rejected a $30 million divorce settlement.

Camille Donatacci - who filed for divorce from the 'Frasier' star after 14 years of marriage - is said to have said no to the offer on the grounds that it includes neither child support for the former couple's two kids Mason, nine, and six-year-old Jude, nor alimony.

An insider 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."

While Kelsey is set to lose a sizeable chunk of his Fortune to his third former spouse, he is reportedly refusing to draw up a prenuptial agreement with his new partner Kayte Walsh.

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."