Lynette Rice
June 07, 2007 AT 04:00 AM EDT

Though the Grey’s Anatomy finale left fans with lots of questions, at least one mystery appears to have been solved: T.R. Knight, a.k.a. the lovable George O’Malley, is expected to return as a series regular. Speculation has been swirling about his possible departure from Seattle Grace — not only because of what happened in the May 17 finale (George didn’t pass the intern exam!) but because of the incident earlier this season with co-star Isaiah Washington (who addressed him with a homophobic slur). According to one insider close to the negotiation, Knight has agreed to a new contract that will boost his per-episode salary to roughly $125,000 and give him a small piece of the show profits (pay hikes and profit points were also granted to many of Knight’s co-stars, including Patrick Dempsey, Ellen Pompeo, and Sandra Oh).

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