Katy Perry may have just watched millions go down the drain, but has managed to wash a very big problem right out of her hair.

On Saturday it was revealed the singer and English hair styling tool giant ghd settled their $2million lawsuit.

TMZ reports that the Jemella Group, the company behind ghd, or good hair daily, hair tools, had tried to sue Katy to stop her making her own legal bid to reclaim sum she says she was owed.

All over: On Saturday it was revealed Katy Perry and hair styling tool giant ghd settled their $2 million lawsuit

Both parties have now agreed to settle the case and waved any right to re-file.

An extra bite: The singer, seen here at the Delete Blood Cancer Gala, claimed the company said it would extend her contract for a $2 million

Katy’s team had been trying to sue the styling company claiming Katy was told her contract with them as the global ambassador would be renewed for $2million.

The company decided however, to drop the 28-year-old as the international face of ghd.

The Jemella group argued there was never an oral agreement to pay Katy a further $2million.

The star had already reportedly earned $4.5million as an ambassador for the brand.

Whether Katy received any of the $2million she claimed she was owed in the settlement remains unknown, TMZ reported on Saturday.

The singer was meant to serve as the face of the product until this year but her agent claimed the oral agreement was in place to extend her contract after that time.

A spokesperson for Katy previously said: ‘Jemella’s attempt to embarrass Ms. Perry by including defamatory statements about her in a public filing is shameful.’

‘They’re backing out of the deal because of an ownership change, and just throwing shade to hide their bad faith.’

The company allegedly claimed in its court fillings it had dropped Katy as her popularity in Europe was fading.

Katy had featured in numerous visually stunning print campaigns for the brand including a Snow White themed shoot and one that saw Katy with various hairstyles from different decades.

The campaigns were shot by famed photographer David LaChapelle.

The relationship between Katy and ghd started off well but seemed to sour when the products were bought by a new company.

In early 2011 Katy said she had been very ‘excited’ to be involved in the project.

She said: ‘I’m so excited to be working with ghd, especially using their tools on my California Dreams Tour to get me stage ready.’

Good hair at first: Katy had featured in numerous visually stunning print campaigns for the brand including a Snow White themed shoot and one that saw Katy with various hairstyles from different decades