Katherine Heigl has dropped her $6 million lawsuit against Duane Reade.

The 35-year-old actress is believed to have come to an agreement with Duane Reade, who will make an undisclosed contribution to the Jason Debus Heigl Foundation - an animal-welfare charity that she and her mother set up following the death of her late brother in a car accident in 1986 - in exchange for her dropping the suit at the Manhattan Federal Court.

According to the New York Post's Page Six gossip column, Katherine's lawyer, Corey Field said: "The parties have agreed to keep the terms of the agreement confidential"

The pretty blonde had claimed the chain tried to profit from the photo without her "knowledge or approval" by sharing the image featuring the company's promotional slogans.

Meanwhile, Katherine recently admitted that her priorities "were messed up" when she starred on 'Grey's Anatomy.'

The actress, who has daughters, Naleigh, five, and Adalaide, two, with husband Josh Kelley, admits trying to balance the show's demanding work schedule and motherhood made her feel "angry and frustrated"

after she adopted her eldest child in 2009.

The 'State of Affairs' star told the September issue of Good Housekeeping magazine: "I would come home angry and frustrated that I'd missed everything with my kid that day. I didn't get to wake her up from her nap or do bath time or bedtime. I'd have to sneak into her room and kiss her when she was sleeping, hoping not to wake her up."

She added: "I felt like my priorities were messed up. I was putting so much time and energy into just my work, but I was raised [to believe] that family comes first."

Katherine decided to focus on expanding her family and relocating from Los Angeles to Utah when she left the drama series in 2010 after five seasons.