O.J. Simpson and his former in-laws are discussing how his two children should be raised but are not fighting over custody, a source close to Simpson's family says.

Simpson and Nicole Brown Simpson's parents have had court-supervised mediation sessions for about four months, and both sides are hoping for an agreement without a bitter trial, the source said."O.J. is realistic enough to know the Browns are in a better situation today to raise the children," the source told The Associated Press on Tuesday, noting that Simpson will soon be occupied every day defending himself in a wrongful death lawsuit.

Simpson hopes to take care of the children daily in the future but in the meantime is concerned about their awareness of their heritage, the source said.

"He has always said he did not want them to be solely raised around white children in a white society," the source said. "He wants them to go to black churches and to understand their culture."

Sydney, 10, and Justin, 7, currently attend an all-white Catholic school in Orange County, where they live with their grandparents, Louis and Juditha Brown.

A message left at the Brown family home was not immediately returned. Family lawyer Gloria Allred and lawyer John Q. Kelly, who represents Ms. Simpson's estate, said they could not discuss the matter.

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Technically, Simpson has had sole custody of his children since his ex-wife and her friend Ronald Goldman were slain on June 12, 1994. But when he was jailed and tried for murder, Simpson yielded temporary guardianship of the children to the Browns.

This gave them authority to make decisions such as where the children would go to school and church. After Simpson was acquitted in October, he became intent on making the key decisions on how the children will be raised.

Meanwhile, Simpson friend Dr. Ronald Fischman was to give a deposition Wednesday in the wrongful death lawsuit. Simpson is being sued by Ms. Simpson's estate and Goldman's family.

In recent depositions, witnesses said Simpson appeared depressed over the breakup with Ms. Simpson in the days before she was killed.

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