Troubled Disney darling DEMI LOVATO has settled her dispute with a back-up dancer, Alex Welch, she punched in the face,

Welch's attorney Donald Karpel told RadarOnline.com: "It was confidential negotiations that ended in complete and amicable resolution.

"She is satisfied."

Welch had been seeking medical attention for the injuries she claims she received when Lovato hit her.

Lovato remains in rehab being treated for her allegedly explosive issues.