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Camille Grammer Will Not Return to Real Housewives of Beverly Hills

03/24/2012 at 03:55 PM EDT

Camille Grammer Will Not Return to Real Housewives of Beverly Hills
Camille Grammer
Tommaso Boddi/Getty
Camille Grammer has decided not to come back for a third season of Real Housewives of Beverly Hills, a source confirms to PEOPLE.

"She's been in discussions and at the end decided she wasn't willing to expose her personal life anymore," says the source. "She's at peace with her decision."

Grammer also recently reached an amicable settlement with ex-husband Kelsey Grammer in the custody case of their two young children, Mason and Jude.

"She's in a great place in her life right now," says the source. "She's grown a lot in this past year and she's made some wonderful friendships [on the show]. It has steered her life in a direction she never imagined. She's ready for new challenges."

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