Ms Jones visits a hospital in her home town

Under the terms of the latest agreement, she will get �1m for each year they are married - a third of the �3m figure she is reported to have initially demanded.

When she becomes his second wife, Ms Jones will also waive all rights to Mr Douglas's earnings even though the wife usually gets half under California law.

The couple - who recently spent a week in Swansea showing off their newly-born son Dylan to family and friends of Ms Jones - are due to get married on November 18 in New York.

Michael Douglas arriving at his future in-laws' house

"Catherine was fed up with all the tit-for-tat rows," said a source.

"She wanted it all settled so she could get on with planning the wedding.

"Now that she has had Dylan she feels a lot more relaxed and she and Michael are totally in love.

"She was mortified at the thought that people would think she was only interested in Michael for his money."

Michael, who is rumoured to be worth �150m, insisted on the pre-nuptial agreement after his first wife, Diandra, was awarded �44m of his money when the couple divorced.