Jordan Strauss/WireImage
People Staff
December 24, 2010 05:30 PM

Demi Lovato and dancer Alex Welch have made peace for the holidays: The Disney Channel star has reached a settlement with Welch, the dancer she struck.

“I’m happy. We came to an agreement and I’m ready to move on,” Alex “Shorty” Welch, a member of the all-female dance crew, Beat Freaks, tells PEOPLE. “I’m ready to start working again.”

Lovato, 18, has been in treatment for emotional and physical issues since the altercation took place in October during the South American leg of the Jonas Brothers‘s world tour.

According to Welch, the punch came after Lovato was confronted by tour managers about her conduct the previous night. The incident left Welch with a black eye and a bruised left cheekbone, and the dancer considered legal action prior to the resolution.

Lovato’s reps had no comment on the settlement.

Welch, 21, would not disclose the terms of the settlement but said that the agreement called for a portion of the settlement to be donated to charity. “That’s important,” she says.

• Reporting by LORENZO BENET and SHARON COTLIAR

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