The 73-year-old singer's doctor disclosed last week that James is terminally ill with chronic leukemia, dementia and kidney problems.
Her adult sons Donto and Sametto had challenged the decisions of their stepfather Artis Mills, who married the singer in 1969 and is the estate's conservator.
Donto James asked a Riverside County judge to appoint him temporary conservator. But The Riverside Press-Enterprise says Monday's agreement keeps Mills in place as conservator.
At issue was the amount of money available to Mills for the expenses and care of the singer. He wanted $500,000, while the sons wanted it capped at $100,000.
The judge set it at $350,000.