09/14/2010 at 01:25 PM EDT
Kara DioGuardi out – Jennifer Lopez
A month after the singer-actress's initial deal with American Idol
fell apart – thanks, in part, to demands that had gotten "out of hand," according to a source – Lopez will after all be joining the judging panel for the show's upcoming 10th season, sources tell PEOPLE.
Lopez's $12 million contract, which was first reported by Deadline.com
, comes two weeks after DioGuardi confirmed she was leaving the show, following in the footsteps of both Simon Cowell
and new judge Ellen DeGeneres
According to the report, Lopez was hoping for movie and TV development deals to accompany and even larger Idol salary as well as input about her new co-judges, but Fox made no commitments and she settled for a cool $12 million.
"She's very excited," a source close to Lopez says of the final deal.
Fox has no comment and a rep for Lopez did not return calls for comment.
No official word on who may be Lopez's fellow judges but Aerosmith's Steven Tyler said he will "probably" be a judge. Shania Twain
, Harry Connick Jr., Elton John and Chris Isaak had also been rumored as possibilities.