Amanda Bynes is said to be making 'significant improvements' as she continues her court ordered hospital stay in Los Angeles after being placed on psychiatric hold.

Said hold was extended last Friday for another 30 days and Bynes' mother Lynn was granted a temporary conservatorship over her, which she is expected to remain under for a long time due to the severity of her behaviour in the last 12 months. 'Amanda can't make important decisions regarding her finances and welfare.' a source told the FOX411 this week. 'But her parents can't either. Everything still needs to go through Amanda's lawyer and the judge.'

'She is easy to deal with at the moment and agreed to stay (in hospital). While she is doing much better, Amanda needs to be monitored. She is on heavy anti-psychotic drugs and that requires constant medical observation. She wasn't able to attend the hearing on Friday because at this point in treatment, she should not be moved.'

Bynes' relationship with her parents is apparent almost non-existent, with Amanda suffering from Post Traumatic Stress Disorder due to the pressure she has felt since she became a Nickelodeon star as a child back in the late 90s.

'Amanda has made significant improvements, she is doing better than she was.' the source added. 'There are no drug problems involved, it's all mental. She has deep anger and PTSD (Post Traumatic Stress Disorder), which tripped a psychotic episode... She is very ill, but manageable. Amanda genuinely wants to get better and has wanted to get better for some time.'

Amanda's mother now hopes to move her to a private facility for further treatment, with a source at RadarOnline saying it ' could happen as soon as this week'.