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Demi Lovato,The 18-year-old Disney star completed her rehab stint and returned to Los Angeles earlier this week. Lovato was spotted in Santa Monica, California on Friday afternoon.

She has yet to decide if she will return to her television show, Sonny with a Chance.  Sources say that for now she “will continue to focus first and foremost on her well-being.”

In turn, a Disney Channel spokeswoman said, “Demi’s management will inform us when she is able to return to work.”

In November,  Demi Lovato admitted herself to a rehab facility to get treatment for “emotional and physical issues.” She had to pull out of a concert tour in Latin America with the Jonas Brothers.

Lovato had fought eating disorders, was bullied at school and had struggled with cutting, her spokeswoman had said.

Her show, Sonny with a Chance, was altered to focus on skethces for So Random, a show within a show on Sonny. So Random is now being developed as a full series, said the Disney Channel. Production started earlier this week.

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Even though she is still in rehab, Demi Lovato’s career is doing better than most people’s, a success she is crediting  to her support from fans. After winning at the People’s Choice Awards last week for Camp Rock 2: The Final Jam and a guest spot on Grey’s Anatomy, Demi Lovato used Facebook to send all of her fans a thank you.  “I wish to thank all the friends and fans who voted for me for the People’s Choice Awards and the Hot Hits Hottest Teen Stars of 2010. I want to make sure my fans know how thankful I am for all their love, support and prayers during this difficult time. Thank you for standing beside me through it all,” Lovato wrote. That is so sweet for Demi to write a thank-you message, though to be fair we imagine she has a lot of time on her hands right now.

Not that it’s all group therapy and no play for Demi Lovato.  Demi has been spotted out in Illinois  and that suggests the singer is able to take good behavior trips as her treatment continues. “Yea just was at target and Demi Levato was there… We asked to take pics but she said no…,” a surprised fan tweeted last Friday. No word yet on whether Lovato will be released to shoot Sunny With A Chance Of, which begins filming the week of January 30. “Everybody is really excited that Demi is still resting, taking time to relax, so I applaud her in that regard. When we start filming again, I’m sure everything will be back to normal,” says Sunny castmate Brandon Mychal Smith.

TV and Movie Reviews wishes Demi Lovato the best

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Demi Lovato and dancer Alex Welch have made peace for the holidays: The Disney Channel star has reached a settlement with Welch, the dancer she struck.

“I’m happy. We came to an agreement and I’m ready to move on,” Alex “Shorty” Welch, a member of the all-female dance crew, Beat Freaks, recently said in an interview. “I’m ready to start working again.”

 Demi Lovato, 18, has been in treatment for emotional and physical issues since the altercation took place in October during the South American leg of the Jonas Brothers‘s world tour.

According to Welch, the punch came after  Demi Lovato was confronted by tour managers about her conduct the previous night. The incident left Welch with a black eye and a bruised left cheekbone, and the dancer considered legal action prior to the resolution.

Lovato’s reps had no comment on the settlement.

Welch, 21, would not disclose the terms of the settlement but said that the agreement called for a portion of the settlement to be donated to charity. “That’s important,” she says.

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