Zeta Jones's pre-nuptial climb down

The Hollywood couple are due to marry in November

Swansea-born Hollywood actress Catherine Zeta Jones is reported to have accepted a third of the cash she wanted as part of a pre-nuptial agreement with Michael Douglas.

It is believed that in the event of the couple splitting up, Ms Jones would receive £2m for every year they had been married.

Ms Jones visits a hospital in her home town

But under the terms of the latest agreement, she will get £1m for each year they are married - a climb down from the £3m she is reported to have initially demanded.

Michael Douglas - who is rumoured to have a £150m fortune - insisted on the pre-nuptial agreement after his first wife was awarded £44m when they divorced.

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 spent last 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 insisted on the pre-nuptial agreement after his first wife, Diandra, was awarded £44m of his money when the couple divorced.