Charlie and Denise FACE OFF Over Their Kids

5/11/2011 8:30 AM PDT

Charlie Sheen Custody -- FACE OFF with Denise Richards Over Their Kids

Charlie Sheen and his ex-wife Denise Richards went to battle at an L.A. lawyer's office yesterday over a custody agreement regarding their kids ... and TMZ has learned the Warlock did NOT emerge victorious.

Sources connected to the negotiation say Charlie wants his daughters Sam and Lola for weekends ... but Denise has had deep concerns about the welfare of the children and under current circumstances, she does not want Charlie to have the kids.

When the two faced off yesterday -- we're told there were "neutral third parties in the room" who agreed  with Denise that Charlie should not have the kids.

We're told the matter is NOT going to go to court ... and right now, Charlie will not get the visits he wants.