Looking for your wallet? Sir Paul McCartney, who stepped out for a quick coffee today in London, heading towards a full-blown public divorce hearing

Heather Mills is "quietly confident" she will get a record-breaking financial settlement from Sir Paul McCartney within days.

The pair are on the brink of resolving their divorce battle and are doing their utmost to avoid slugging it out publicly in court next February, the Daily Mail has learned.

The figures have been set, the finer details of a confidentiality clause and custody rights have been tinkered with and Miss Mills told friends: "This is the first day of the rest of my life."

Miss Mills, Sir Paul and their legal teams negotiated towards a final settlement, guided by Mr Justice Coleridge in an annexe to the Royal Courts of Justice, on Thursday.

The result is thought to be a proposal where Miss Mills will get a multi-million pound lump sum and annual payments of several million pounds.

When talks first began, Sir Paul, 65, insisted on a strict confidentiality clause covering their four-year marriage.

But 39-year-old Miss Mills felt so strongly that she should "have a voice" - in other words she should be able to write about the marriage in a biography and talk about it on chat shows - that she has forfeited as much as £1million a year to have the gag loosened.

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After his day in court: Sir Paul last night at son-in-law Alasdhair Willis's exhibition in London. From left, Willis, McCartney, his son James, and daughters Mary and Stella

Gwyneth Paltrow was another guest at the Established & Sons Gallery last night

Sir Paul is considering whether to agree or head for what has been described as "all-out war" in court.

A friend of Miss Mills's said: "It's not really in anyone's interests for that to happen.

"That said, the fact that Paul didn't say yes straight away was slightly unnerving for her."

Miss Mills, who has a daughter, Beatrice, with Sir Paul, broke down in tears during Thursday's session.

Sticking point: Heather Mills arrived on crutches to the closed meeting yesterday

"They spent eight and a half hours debating every fine detail - the wording and the figures, the so-called gagging order, how the payments would be made, a tax provision for Heather, Paul's visitation rights, how long Heather could be in America and abroad with Bea, how long Paul can take her away for without Heather."

The friend added: "It's as if she had been weakened by this long fight.

"When it became obvious that they were nearing a resolution, she just seemed to lose her composure and broke down in tears."

In happier times: The couple on the eve of their wedding in 2002