Kim Valentine, AKA Libby Kennedy, is set to return to Ramsay Street as part of a three-week special celebrating 20 years of the Kennedys on Neighbours.

The actress was last seen on the show in 2011, and had a legal battle with producers over alleged sex and disability discrimination in July last year.

The 36-year-old sought compensation for lost wages and "pain, hurt, suffering and humiliation" after a period of poor health. Fremantle Media Australia and Valentine eventually agreed a confidential settlement out of court.

However, Valentine is set to return to the street to join her on-screen mum and dad, Susan and Karl, played by Jackie Woodburne and Alan Fletcher.

She said: "I’m really looking forward to catching up with old friends at Neighbours as well as getting to know many of the new cast. Playing Libby was a very important part of my life and I can’t wait to reintroduce audiences to her."

On Valentine's return, Woodburne said: "She said: ‘It’s wonderful to have Kym back for this milestone year and for Alan and I, and we’re just lucky the Kennedys have that wing of bedrooms that we don’t see to accommodate everyone."

Lovers of the soap will remember Libby's various story lines, including when she got married to Drew, and also his heartbreaking death, when he fell from a horse. We've even included a clip from his funeral (below) if you fancy a cry this morning.

The episodes will air in three months.

(Images: FreemantleMedia Ltd/REX)