INSIDE EDITION is learning more about the settlement Oprah hammered out with the former headmistress of her all-girls school in South Africa just days before a trial was scheduled to begin.
The headmistress, Nomvuyo Mzamane, sued Oprah for defamation, claiming she had been unfairly blamed by Oprah for the abuse scandal that erupted at the school.
Oprah's best friend Gayle King talked about the settlement on her SIRIUS Satellite Radio show Wednesday:
"She said she wanted to handle it woman to woman and they have worked it out. There will not be a trial, and I know Oprah's happy!" King said.
She also revealed that Oprah did not want the pupils in South Africa to go through the ordeal of having to testify at the trial in Philadelphia.
"The last thing Oprah wanted to do was put her students from South Africa in a trial in the American court system," King said.
Oprah and the woman suing her released a joint statement saying, "the two parties met woman to woman without their lawyers and are happy that they could resolve this dispute peacefully."
The principal left Oprah's school after a dorm matron was arrested for abusing some of the girls.
INSIDE EDITION cameras caught the dorm matron being walked into court by police.
She pled not guilty and is still awaiting trial.