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Judge Jenny from the Block

Jennifer Lopez will ink a deal to become a permanent judge on American Idol.

Us magazine reports Jennifer Lopez will finally put her John Hancock on a deal to become a permanent judge on American Idol.

Lopez is reportedly studying the final details of her new contract. She is ready to sign the deal to join old-timer Randy Jackson and newcomer Steven Tyler of Aerosmith as the third judge on the judging panel.

There were reports the 41-year old singer-actress was asking for too much money and had too many diva demands. However, it appears people counted Lopez out too quickly. A source reveals "it ended up working out and they have a good agreement."

A rep for Jennifer Lopez had no comment on the news. An official announcement is expected to come in early October, just before auditions take place for the next season.

Seats on the judging panel became available after Simon Cowell, Ellen DeGeneres and Kara DioGuardi all left the show.