secret deal with the tycoon who fought her for it.

Mrs. MacMillan has been battling for three years to stop Canadian millionaire Mr. Michael DeGroote claiming her island home.

He took her to court after she backed out of an agreement to sell it to him for $8.5 million.

Last year, after a 30-day trial, a judge said she must go through with the sale.

But now a behind-the-scenes deal has been done -- and she can keep her private paradise.

The MacMillan family company, Cargill, is the largest private firm in the US, and is valued at $47 billion. Mrs. MacMillan, 60, has a personal fortune estimated at $700 million.

She had been expected to fight the judge's ruling all the way to the Privy Council in London. Her next step, an Appeal Court case, was due to start on March 10.

Mr. DeGroote, also 60, is a self-made Canadian businessman who came to Bermuda as a tax exile.

He seemed determined to make Mrs. MacMillan stick by her agreement to sell. A source close to the case said: "You often find that these marathon contests disappear in a puff of smoke. Everyone has come out of this reasonably satisfied and can get on with their lives.'' Lawyers involved would not reveal details of the deal.

Mr. John Riihiluoma, lawyer for Mr. DeGroote, said: "The matter was settled to the mutual satisfaction of both parties. That's all I can say on it.'' Mr. Julian Hall, lawyer for Mrs. MacMillan, said: "I'm pleased to say there has been a resolution of the long-standing dispute between Mrs. MacMillan and Mr. DeGroote.

"I am not at liberty to reveal the details of that settlement. However, I am at liberty to say that Mrs. MacMillan will continue to be the owner of Perot's Island.'' Mr. DeGroote had agreed to consent to an Appeal Court ruling that the sale did not have to go ahead.

"This has involved several weeks of research, planning, looking at our positions, and at the end of the day, I think, negotiation.

"Mrs. MacMillan is very pleased with the result and, we'd like to think, so is Mr. DeGroote.'' Perot's Island, a 71 -acre property in Riddell's Bay, has a beach and a main house with 15 rooms, including seven bathrooms and five bedrooms.

Mrs. MacMillan told the court she wanted to set up a retreat there for people in need of psychological counselling.

She told the court of her own tragedies -- she was physically abused by her alcoholic mother and suffered three broken marriages.

She said she needed her local "psychological support group'' and would suffer if she had to leave her island.

She also claimed misconduct by real estate firms Betco and Coopers, but this allegation was dismissed by the judge.

The trial, which attracted media attention in Canada and Britain, was described as a "lawyer's bonanza'' by one legal commentator.

Mr. DeGroote has been living in a $6.5 million home on Grape Bay, Paget, called Evergreen. He could not be reached for comment.

Mr. Michael DeGroote.