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Rowe's lawyers released details of the new agreement on Thursday morning, but a judge still needs to approve the agreement.
Attorneys for Katherine Jackson and Debbie Rowe say no money changed hands. They were united in their goals to do what's best for the children.
In Jackson's 2002 will, the pop icon specified his mother should care for them in the event of his death.
According to an ABC News source, Rowe is the biological mother of Paris and Prince Michael.
Both women will split evenly the cost of a child psychologist, and Debbie Rowe will continue to receive the spousal support that she and Michael Jackson agreed to.
Rowe's attorneys said how often she visits will be up to the child psychologist.
There is no mention of Joe Jackson or Jackson's siblings in the agreement.
A judge must now sign off on the agreement.
A court date is set for next Monday.
Katherine Jackson also wants a judge to name her co-executor of her son's will.
In the meantime, the coroner's office has finally given Jackson's family the results of the final autopsy on the singer. However, the public release of the toxicology tests has been delayed until next week.
ABC News believes that the anesthetic propofol is listed as a contributing factor. Jackson was also known to use oxycontin and demerol.
Jackson's former chef Douglas Jones is speaking out, saying Jackson had what looked like track marks on his arm.
"I did notice it, but I left it alone, you know, but looking back now, things come together and puzzle together, it could have been where needles were placed for the Diprivan," Jones said.
Jones said Jackson's personal doctor Conrad Murray would arrive to the home in the evening and leave in the morning.
"He was to monitor Mr. Jackson during the evening, health wise, to monitor him health wise to see how he was sleeping," Jones said. "It was just him and Mr. Jackson one-on-one. He never got into detail with me about how, what he was treating Mr. Jackson for."
Police are investigating Jackson's death as a possible manslaughter case, and although Murray has been at the center of the investigation, he has not been named a suspect.
The Associated Press has reported Murray told investigators he gave Jackson the anesthetic propofol the night he died to help him sleep.
Authorities believe the drug caused Jackson's heart to stop.
Murray's job was to keep Jackson healthy for AEG's London tour. He was reportedly paid $150,000 a month.
It appears Murray was deeply in debt and had numerous legal troubles.
Records show the cardiologist was more than $100,000 behind on mortgage payments for his Las Vegas mansion. His attorney says it's because AEG has not paid him for two months of work he did before Jackson died. He also says the home is in pre-foreclosure.
Murray also owes more than $700,000 in unpaid business bills, including rent for his office and over $13,000 in child support.
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