Amanda Bynes has allegedly been formally diagnosed with schizophrenia and bipolar disorder.
The Easy A actress, who was moved to The Canyon treatment facility in Malibu three weeks ago after spending two months at UCLA Medical Centre, has reportedly been told she will "lead a long, normal life" as long as she continues to take her medication.
A source told gossip website RadarOnline.com, "She does indeed have schizophrenia and bipolar disorder. It was what Amanda's parents, Rick and Lynn, had suspected all along.
"Nevertheless, it was difficult to process for Amanda's parents. The bright side is that Amanda can lead a long, normal life, as long as she takes her medication. Doctors at the treatment facility are still working to get Amanda therapeutic meds and she's responding to the medications she is being given to treat her dual diagnosis."
Amanda's mood has improved immensely since she moved to the new facility.
The insider said, "Amanda is responding very well to her new doctors and treatment. It's much better. UCLA just wasn't the right fit for Amanda. She was turning into a zombie and was withdrawing into herself even more."
Amanda's parents released a statement about her progress on Monday and said they were upbeat about her recovery. Her mom, Lynn, was granted a temporary conservatorship over her daughter (27) in August, shortly after she was placed under an involuntary psychiatric hold in a treatment facility after being brought there by police officers, who arrested her after she set a small fire in the driveway of a stranger's home in Thousand Oaks, Los Angeles.