Urmila Matondkar and Ramgopal Varma have buried the hatchet! Varma's original muse has agreed to star in his next film that goes on floor this June. Matondkar had made an unofficial exit from Varma's camp after the filmmaker began favouring actress Antara Mali.

Sources reveal that Mali's growing popularity in the Varma camp and status as the Factory's in-house heroine put off Matondkar. She decided to look for interesting projects outside Varma's banner. She went on to sign the critically-acclaimed Pinjar and soon-to-be-released Naina.

Matondkar, however, rubbishes rumours about the fallout. "It's just that the roles that were offered to me by his banner didn't appeal to me," she argues. There was a time when Varma couldn't think beyond Matondkar. But when his production house was launched, the director began looking for fresh faces. Varma has always maintained that he casts actors only on the basis of what a role requires.

Inspite of Naach's debacle, he has signed on Mali for two more films. With Urmila's re-entry, it does look like Matondkar and Mali will have to learn to co-exist!