Marie Osmond has pulled the plug on plans to remarry her first husband Stephen Craig – after the two got into a nasty fight over her fears of him cheating, sources say.

“Stephen and Marie were in a really good place with their relationship until the holidays rolled around,” a family friend told The ENQUIRER.

“They were going out on romantic dates, spending time at home in Las Vegas with the kids and genuinely cherishing their time together.

“Making plans to marry this summer took precedence over almost everything else in their lives.”

Marie, 51, first wed Stephen, 54, a former semi-pro basketball star, in June 1982, after an 18-month courtship. They had a son the following year but divorced three years later, with Marie accusing Stephen in divorce papers of cheating throughout the marriage.

“Marie tried to put the past behind her, but after reuniting with Stephen, suspicions about his cheating stayed in the back of her mind,” said the source.

“When Stephen traveled to New York over the holidays to visit her while she was performing with her brother Donny, she told him flat out, ‘I just don’t feel I can trust you.’

“Stephen insisted he’s a much different man than he was 25 years ago, but Marie wouldn’t hear it. It ended with Marie calling off the wedding.”

Since Marie’s holiday meltdown, she and Stephen have made several attempts to mend their relationship, but they just can’t get back on track, said the source.

“Stephen is devastated over Marie’s decision to call off the wedding,” the friend revealed. “He’s done everything he can think of to change her mind, but she won’t budge.”

Marie’s seven children are also disappointed over her change of heart, said the source.

“They’d all been busy planning the wedding and were distraught when they learned their mom called it off,” said the source.

Adding to Marie’s emotional turmoil is her ongoing grief over her 18-year-old adopted son Michael’s tragic suicide last February when he leapt from the balcony of his eighth-floor Los Angeles apartment.

“While she was in New York, Marie stayed at the Marriott Marquis – the same hotel where she and Michael had once stayed,” the friend explained.

“Being there without him brought back an avalanche of emotions that Marie wasn’t prepared to deal with. Her heart constantly aches for Michael, especially with the one-year anniversary of his suicide approaching.

“Marie’s children fear she’s heading for an emotional breakdown now that Stephen is out of her life. Everyone hopes she’ll come around before it’s too late and she loses Stephen forever.”