"My family has resolved all confusion as it relates to our plea to the court and request for document interpretation after my daughter Lisa Marie's untimely passing," Priscilla's representatives told Fox News Digital.
"Although the media identified such a plea as a lawsuit, I want to make clear that there was never any lawsuit filed against my beloved granddaughter. As a family, we are pleased that we resolved this together."
Riley, 33, was named as the beneficiary of the estate following Lisa Marie's death on Jan. 12.
Priscilla added, "My family and I hope that everyone will grant us the privacy we have needed to properly grieve Lisa Marie and spend personal time together. We love and appreciate all of you and the Presley family is stronger than ever."
Priscilla, 77, had challenged an amendment allegedly made by Lisa Marie in 2016 that replaced her business manager and mother as beneficiaries with her oldest children, according to the Los Angeles Times.
Lisa Marie's son, Benjamin Keough, died by suicide in 2020 – making Riley the sole beneficiary.
Details about the document were not disclosed in court Tuesday and neither were the terms of the settlement, the Los Angeles Times reported.
Lawyers have requested the settlement to be sealed.
Elvis and Priscilla's only child died in January at the age of 54.
Her cause of death was deferred by the Los Angeles County Medical Examiner-Coroner, and has not yet been determined.
"After an autopsy, a cause of death has not been determined and the medical examiner is requesting more investigation into the death, including additional studies," Sarah Ardalani told Fox News Digital shortly after Lisa Marie's death.
HOLLYWOOD, CA - MAY 07: Actresses Priscilla Presley (L) and Riley Keough attend The Humane Society of the United States' to the Rescue Gala at Paramount Studios on May 7, 2016 in Hollywood, California. (Photo by Michael Kovac/Getty Images for The Hum
"Once the tests/studies come back, the doctor evaluates the case again and makes the cause of death determination."
In addition to her daughter Riley, Lisa Marie is survived by twins Harper and Finley.
The twins' father, Michael Lockwood, was recently named their official guardian. Lisa Marie and Michael were married for 11 years before their divorce was finalized in 2021.
"Everyone is happy," Priscilla's attorney Ronson J. Shamoun said, according to the outlet. The family is "unified and happy for the future."
Lisa Marie was buried next to her son and her famous father at Graceland – the family estate in Memphis, Tennessee.
During her public memorial service, Riley revealed she secretly welcomed a baby girl.
Her husband, Ben Smith-Petersen, read a letter from the "Daisy Jones & The Six" star to her late mother.
"Thank you for showing me love is the only thing that matters in this life," he read." I hope I can love my daughter the way you loved me, the way you loved my brother and my sisters."
"Thank you for giving me strength, my heart, my empathy, my courage, my sense of humor, my manners, my temper, my wildness, my tenacity," the letter continued. "I’m a product of your heart, my sisters are a product of your heart, my brother is a product of your heart."
Fox News Digital's Larry Fink contributed to this report