Britney Spears has reached a financial agreement with the owners of the car damaged in an alleged hit-and-run.

The singer was caught on camera scraping Kim Robard-Rifkin's vehicle with her Mercedes-Benz while attempting to park in Van Nuys, California on August 6th.

The troubled star, 25, was booked on two misdemeanour charges of hit and run causing property damage and driving without a valid licence before being released on bail on Tuesday.

But Spears' lawyer J. Michael Flanagan anticipates the charges will be dropped after Spears offered Robard-Rifkin $1,000 compensation.

He also hopes the driving without a licence charge will be reduced to traffic infraction after proving she is licenced.

Flanagan tells People.com, "It's approximately in the $1,000 range. We're also working on resolving the license issue."

Spears is due in court for her arraignment on October25th.