On Wednesday Los Angeles Superior Court Commissioner David J Cowan dismissed the guardianship case over Meadow Rain Walker after hearing of an "adequate plan" for her care.
According to attorney Amy Nieman, Meadow will live with her mother Rebecca Soteros, who has been receiving help for her alcoholism and is currently sober. The pair will stay in a home purchased by late actor Paul.
Paul Walker with his daughter Meadow
The lawyer added that the care plan also requires Meadow to keep the nanny who has looked after her for almost two years, while a friend of Paul's has also been tasked with checking that the teen is properly cared for.
Paul Walker's ex agrees to rehab in order to keep custody of their daughter Meadow
Amy concluded that there are "a lot of layers of support for Meadow".
Meadow had been living with Paul in the years before his death
The court ruling comes after Paul Walker's mother Cheryl dropped her petition to become her granddaughter's legal guardian last month at Meadow's request.
Paul Walker's mother seeks guardianship of his daughter Meadow
Cheryl's attorney Steven Bledsoe commented that his client had accepted the new arrangement for Meadow's care "in the absence of a better plan".
Paul Walker died in a car crash in November 2013
Meadow had been residing in California with her famous father for two years before his unexpected death in November 2013, having left the Hawaii home she lived in with her mother.
Rebecca, who was arrested for drink driving in 2003 and 2013, raised her for 13 years.
Meadow is set to inherit Paul's entire £15million fortune.