Sherri Shepherd -- Settles Divorce ... Rolls Over on Child Support, Sorta

Sherri Shepherd's nasty divorce and custody battle is finally over ... and stunningly, she has agreed to pay child support for the kid she disavowed from birth ... but with a catch.

Our sources say, Sherri and estranged hubby Lamar Sally have struck a settlement agreement in which the ex-'View' co-host will pay $4,100 a month in child support. The monthly obligation increases to $4,600 when the kid turns 13.

Remember, Sherri fought Lamar tooth and nail in court, claiming he defrauded her into getting a surrogate to carry a baby for the purpose of getting child support.

Now for the catch. According to the settlement agreement, Sherri is allowed to pursue her fraud claim and if the appeals court rules in her favor, her child support obligations will disappear.

And there's a Sofia Vergara twist ... the couple has embryos in storage and Sherri wants them destroyed. Lamar is undecided. According to the settlement, if Lamar chooses to bring the embryos to term, Sherri will not have to pay child support.