It looks like Katherine Heigl is finally, officially done with Grey’s Anatomy. That’s what some sources associated with the production are saying.

According to insiders at ABC and Grey’s, Heigl has been asking to leave the series for nearly three years and she is finally getting what she wanted, Shonda Rhimes and ABC execs have agreed to let her out of her contract.

“She’s leaving the show,” one ABC insider said. “She wants to do movies.”

Apparently, things got pretty tense at one point and one staffer at GA said it was “pretty miserable” and “they [the producers] decided to let her leave.”

It is unlikely that Katherine will return to the Grey’s set at all and apparently, the writing staff is trying to figure out  how to handle her departure in the storyline.

As for Katherine’s side of the story, a source from her camp says that the actress was never given a call time to return to work on the show after her family leave ended earlier this month. According to this source, Heigl’s “calls weren’t returned” when she called in asking when to return to Grey’s.

Great news over at Grey’s this week. Kim Raver is becoming a permanent member of the Grey’s Anatomycast and best of all, she may be replacing Katherine Heigl. ABC confirmed yesterday that Raver’s character, Dr. Teddy Altman, aka “Desert Storm Barbie”, has been made a series regular.

According to E!, “Katherine is definitely still under contract [with Grey's Anatomy] but it’s no secret she wants some time away from Grey’s to be with her baby and shoot movies, so bringing on Kim helps with that.”

 E!’s source also said that Kim will appear in 11 of the remaining 12 episodes this season. “The producers and ABC execs love Kim,” one insider told E!. “They are invested in her for the long haul.”

For fans of  Cristina (Sandra Oh) and Owen (Kevin McKidd) there’s no need to panic, the producers like them too and don’t plan to split them up just yet. Kevin (Owen) and Sandra (Cristina) are apparently still shooting romantic scenes together for later episodes. “They were shooting a scene recently,” one eyewitness said, “and Cristina kept laughing because Kevin had just had his hair dyed a little more red than usual. She kept saying, ‘It’s so distracting!’”

Are you excited about Kim sticking around on Grey’s? What about Katherine Heigl?

As I explained yesterday, its upfront week. This morning, ABC and NBC announced their fall line-ups. Here’s a look at what’s staying and what’s going on ABC.

The alphabet network is cancelling four shows, Cupid, The Unusuals, Samantha Who? and According to Jim (finally) and are introducing ten new series next year. These new series are Cougar Town, a comedy about hot fortysomething women starring Courteney Cox, Eastwick, based the ’80s movie The Witches of Eastwick, stars Rebecca Romijn and Lindsay Price, Flash Forward is about what happens when every person get a preview of their life in six months, stars Joseph Fiennes and Sonya Walger, The Forgotten is about a bunch of freelance investigators who try to give faces, names and stories to unidentified victims, stars Reiko Aylesworth, Hank is Greenacresstarring Kelsey Grammer, Happy Town is like Men in Trees meets Harper’s Island, starring Geoff Stults, The Middle is a sitcom about a Midwestern family starring Patricia Heaton and Neil Flynn, Modern Family is shot documentary style and follows three families, stars Ed O’Neill, V, is a remake of the 1980s miniseries about reptilian aliens who come to Earth to try to eat our flesh, starring Elizabeth Mitchell as an FBI agent trying to keep her son from becoming lunch and finally, Shark Tank is a new reality show about venture capitalists.

Here’s a look at the full schedule for ABC (after the jump):

Monday

8 p.m.: Dancing With the Stars
10 p.m.: Castle

Tuesday

8 p.m.: Shark Tank
9 p.m.: Dancing with the Stars results
10 p.m.: The Forgotten

Wednesday

8 p.m.: Hank
8:30 p.m.: The Middle
9 p.m.: Modern Family
9:30 p.m.: Cougar Town
10 p.m.: Eastwick

Thursday

8 p.m.: Flash Forward
9 p.m.: Grey’s Anatomy
10 p.m.: Private Practice

Friday

8 p.m.: Supernanny
9 p.m.: Ugly Betty
10 p.m.: 20/20

Sunday

7 p.m.: America’s Funniest Home Videos
8 p.m.: Extreme Makeover: Home Edition
9 p.m.: Desperate Housewives
10 p.m.: Brothers & Sisters

Have you ever been watching a TV show and wondered, what is that song? Now ABC is making it easy for you to find out. The network has just launched the ABC Music Lounge which offers an inventory of songs and artists featured on its shows.

The web site offers streaming radio that plays over 200 artists who have been heard on ABC. Each artist also has their own page and a link to purchase their music online. In addition to artist pages, the site provides music videos, exclusive performance footage and interviews with artists and show producers.

“This is way to bring all the music of ABC into one place, to allow people to find and enjoy it,” said Michael Benson, ABC executive vice president for marketing.

Artists featured in the music lounge include Kayne West, Airborne Toxic Event, Coldplay, Howie Day, Adele, the Fray, Lenka, Anya Marina, Joshua Radin and Rilo Kiley.

The site launched on Thursday to coincide with “Grey Anatomy’s” 100th episode and offered a retrospective of the music featured throughout the show’s run.

ABC considers itself another venue for the audience to find new music and for that reason they are willing to take on “important responsibility” of helping to launch new artists in a changing music industry, said Dawn Soler, ABC vice president for TV music.

According to the network, sales of the Fray’s “How To Save A Life” increased 300 percent after it was played during an episode of “Grey’s Anatomy,” while downloads of Lenka’s “Trouble Is A Friend” jumped after it was featured on the show.

The network is reportedly working with record labels to create a new business model that will provide revenue-sharing opportunities and help reduce license fees for the use of music on TV.

The debate over the fate of Katherine Heigl’s character on Grey’s Anatomy rages on. Heigl, who is currently filming the upcoming thriller, Five Killers, with Ashton Kutcher in Nice, France, is now saying that she has no idea what will happen to her character, Izzie Stevens. At a studio party marking Grey’s 100th episode, Heigl said its too soon to speculate about the fate of Dr. Stevens.

“I was assuming that at one point and I got a lot of shrugged shoulders and shakes of the head, so I don’t know if that’s a yes or a no. No one will tell me and I don’t know how this is going to go,” Heigl said, noting series creator Shonda Rhimes’ passion for plot secrecy. “I don’t know if I live or die. I don’t know how Izzie fares,” said the actress, who’s played the character since the show debuted in 2005. “I’m there” if Izzie remains part of Grey’s Anatomy,” Heigl said.

Currently, Heigl’s character is battling a rare form of cancer that only has a 5% survival rate. In last week’s episode, Izzie survived a dangerous brain surgery but her fate still hangs in the balance fueling the rumors that Heig was leaving the show.

Heigl also said she is happy balancing her big screen pursuits with her small screen day job.

“I’m more than happy to make that compromise. As my agent likes to say, ‘High-class problems,’” Heigl said. “I don’t know if I want to continue for five years working 12 months a year, but I can take at least another year or two,” she said.

In other GA news, the show’s creator, Shonda Rhimes, let it spill that the 100th episode takes place on Meredith and Derek’s wedding day. That is all the information she would spill and it certainly doesn’t mean they will actually get married. Remember what happened on Burke and Cristina’s wedding day?

The show’s 100th episode will air May 7th on ABC.