Amanda Bynes is expected to be released from rehab in time for Christmas.
The troubled actress, who has been in care since being placed under an involuntary psychiatric hold in July, will reportedly be granted release in December after exhibiting marked improvements in her health.
According to TMZ, Bynes has responded well to the medication and counselling she has been provided at The Canyon rehab facility in Malibu, California - where she moved to in September after transferring from the UCLA Medical Center's psychiatric ward - and doctors believe the treatment has "sufficiently stabilised" her.
The 27-year-old star is expected to be released into the care of her mother, Lynn, who will supervise her at their family home as she readjusts to the world.
It was recently reported the 'She's the Man' actress - whose erratic behaviour in public and on Twitter earlier this year led to her involuntary psychiatric hold - has been allowed to embark on supervised outings twice a week as she has made "great progress".
A source said: "Amanda is being given two passes a week to go the beach, or out to eat and do things like that, accompanied by a professional handler."
Bynes was allegedly diagnosed with schizophrenia and bipolar disorder upon being hospitalised in July following a bizarre incident in which she set fire to a neighbour's driveway in Thousand Oaks, Los Angeles, and accidentally doused herself and her pet pooch in gasoline.
The 'Easy A' star's mother was granted a temporary conservatorship over her daughter's affairs in August.