It seems the pair, who are parents to 8-year-old Junior and 6-year-old Princess, will come face-to-face at the High Court in March, after their legal teams failed settle their differences outside of court.
Katie, who has been married twice since divorcing Pete- once to Alex Reid, and currently to part-time stripper Kieran Hayler, 27, has accused Pete and his manager of trying to leak details of her private life to the press and wants £250,000 damages.
Pete denies this, and has reportedly filed papers alleging she used her private life for commercial gain when she publicly discussed a miscarriage she had in 2009 with Piers Morgan.
A source close to 35-year-old Katie, who recently gave birth to her first son Jett with Kieran, has revealed that neither party will back down.
‘Neither of them will back down. This will now be about the winner taking it all.’
Pete, 40, who is expecting a baby in the New Year with 23-year-old medical student Emily Macdonagh, has remained silent on any reported issues, revealing how much he is looking forward to a family Christmas.
Katie, however, has taken to Twitter over the past two days to vent her anger at Pete. In a series of upset tweets, the mother-of-four, wrote:
‘What kind of Dad doesn't let their children see their mum not even 1day over christmas when the children want 2 c their mum #fakefamilyman'
‘I wouldn't do this to pete and deprive him and his newborn from seeing the kids for its 1st Christmas'
‘Did you know he loves his kids'
‘This shows how much he loves his kids'
‘Can someone remind him he has a son called Harvey that calls him dad or was that just for show too.’