Former American Idol star Fantasia Barrino has saved her North Carolina home from the auction block - after striking a last-minute deal with financiers.

The singer, who won the TV talent show in 2004, purchased the six-bedroom house in Charlotte, North Carolina in March 2007 for $1.3 million.

But she ran into financial trouble in 2006 after she was forced to borrow more than $68,000 from Broward Energy Partners to pay her taxes.

However, she reportedly failed to keep up with her repayments and the local Mecklenburg County Sheriff's Office was due to auction off Barrino's mansion to help reimburse the company.

The property was due to go up for sale on Monday, but the auction was called off after Barrino's lawyers reached a settlement deal with bosses of Broward Energy Partners.

Details of the negotiations have not been made public.