According to a statement from Katie's lawyer, ""The case has been settled and the agreement has been signed. We are thrilled for Katie and her family and are excited to watch as she embarks on the next chapter of her life,"
He added, “We thank Tom’s counsel for their professionalism and diligence that helped bring about this speedy resolution.”
Holmes filed for sole custody of Suri and that is the key issue in the private talks.
While no details of their agreement are public, the former couple said "We are committed to working together as parents to accomplish what is in our daughter Suri's best interests,” the exes said in a joint statement. “We want to keep matters affecting our family private and express our respect for each other's commitment to each of our respective beliefs and support each other's roles as parents.”
Asked about the terms of the settlement, Cruise's publicist Amanda Lundberg reiterated: "They are private."
Sources tell the magazine that Suri, 6, will likely stay with her mother in New York. Tom will get generous visitation rights.