If you really like this friend try and save it like Mac said. If not, dump the lease, dump her.
I have a friend who is actually one of my bests and we have spats all the time. Not quite the same as this but we're both obnoxiously prideful and that sometimes gets between us and insults get thrown and often I contemplate the idea of us being better not speaking. However, at the end of the day we know we're the same and honestly, who else would tolerate us?
We're meant to be together til the end of the world, I think.
Now...From the information you've provided this is NOT the same situation as what I have with my friend. However, if there's more info that makes it so, try and save what you can.