The former couple have been locked in a bitter legal battle since the ex-Spice Girl filed for divorce after 10 years of marriage last month, but it looks like the end could be in sight for the pair as the singer is believed to be on the ''verge'' of offering him the lump sum and giving him the stunning island - situated in Virginia - she bought him for £1 million for his birthday in 2014, but he has to sign a document confirming he won't speak of their divorce in public first.
A source told the Daily Star newspaper: ''Mel wants it done and dusted as quickly as possible to prevent any more harm being done to her kids. She'll give him £5 million plus that bloody white elephant of an island, which was a total waste of money.
''He wants double that, but he'll take what's being offered because if he gets into a fight with her then her pockets are much deeper than his.''
The rumoured settlement conditions come after the 41-year-old film producer broke his silence by stating he's willing to fight the brunette beauty for custody of their five-year-old daughter Madison after Mel said she was seeking full parental control of the youngster.
Stephen - who was also stepfather to Mel's daughters Phoenix Chi,18, and 10-year-old Angel - said over the weekend: ''They are the only things that matter to me.
''I'm going to have to get off the phone because family court frowns on that. It is in the hands of my lawyers. My kids are the only thing that matter to me.''
Mel was granted a restraining order against Stephen last week after she accused him of abusing her, getting their nanny pregnant and forcing her to take part in threesomes.
She alleged the abuse started within the first year of their marriage in 2007 and became a ''pattern'' for the then-couple with Stephen allegedly choosing to ''beat her down to let her know he was in charge'' whenever she saw a spike in her career.
Mel has claimed she had previously tried to leave Stephen but he ''threatened me with violence and threatened to destroy my life in every possible way ... destroy my career and take my kids from me.''
Stephen has denied all the allegations against him and has asked for spousal maintenance, and for Mel to fork out for the fees his lawyer is charging to settle the divorce.
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