Deal reached to keep Christel Khalil on Y&R

Christel Khalil will not be leaving The Young and the Restless after all. Contract talks, which had been at a standstill, have now reached a resolution that will keep Khalil on board as Lily. Khalil joined the show in August 2002.

Despite an announcement from the actress' official fan club to the contrary, Christel Khalil (Lily Winters) will not be leaving The Young and the Restless. The actress and show executives reached a deal that will keep the Emmy winner in Genoa City.

In August, as contract talks between the two sides broke down, The Young and the Restless issued a casting call for the role of "Sally Tate" that raised eyebrows with its Lily-like description. A message went up almost immediately on Khalil's official web site confirming that the actress was "indeed leaving" the top-rated CBS soap.

A day later, Khalil confirmed that the show was moving forward with plans to recast the role she'd played off and on for a decade. Khalil indicated that she wanted "a few less restrictions," presumably a reference to her desire to be able to work on projects outside of Y&R.

Fans' hopes were raised when executive producer Jill Farren Phelps, in an interview with TVGuide, remarked that both sides had returned to the bargaining table, and that the recasting process had been put on hold. In fact, a group of fans arranged to have a plane fly over the Y&R studio with a banner voicing their desire to have Khalil remain with the show.

Soap Opera Uncensored's Nelson Branco reports that while Khalil is staying, she has not inked a new contract.

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"A source close to the actress confirms that the Emmy winner is on recurring status, which is what she wanted," Branco revealed.

The Young and the Restless does not comment on contracts.

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