By Jen Heger - Breaking Celebrity News Assistant Managing Editor

Diana Ross will sign off on a new proposed custody agreement in which Michael Jackson's three children, Prince, Paris, and Blanket will have two guardians, their grandmother Katherine Jackson and TJ Jackson, son of Tito, Breaking Celebrity News is exclusively reporting.

"Diana has no qualms whatsoever about the new custody agreement, she only wants what is best for the children. Diana knows that the children are old enough to decide who they want to live with and she defers to what they want. While Diana hasn't been a big part of their lives because she lives on the East Coast, she is very fond of them," a source close to the situation tells Breaking Celebrity News exclusively.

Michael Jackson's will stipulated that if his mother was unable to care for the children, Diana Ross was his next choice.

As Breaking Celebrity News previously reported, last week, Judge Mitchell Beckloff, stripped the Jackson family matriarch of her guardianship of the three children because no one could reach her for over a week. The judge said he made the ruling not because of any wrongdoing on Katherine's behalf, but because she had been prevented from fulfilling her guardianship duties by an "intentional act from third parties." Judge Beckloff told all parties while in court last week, that Diana Ross, and Debbie Rowe, mother of the two oldest children, needed to be provided notice of what was transpiring.