(USA Today) - Katie Holmes's attorney Jonathan Wolfe confirmed the deal in a statement to People:
"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."
Cruise's longtime lawyer, Bert Fields, tells TMZ, "The Tom Cruise-Katie Holmes case has been settled with a signed agreement. Tom is really pleased we got there, and so am I."
Earlier, the couple issued a joint statement asking for privacy, reports People.com.
"We are committed to working together as parents to accomplish what is in our daughter Suri's best interests. 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," read the statement from Holmes and Cruise's reps, Nanci Ryder and Amanda Lundberg respectively.
According to People, sources close to both sides say that Cruise, 50, and Holmes, 33, would likely agree to an arrangement where Suri, 6, lives in New York with her mother and her father is given generous visitation rights.
By Lorena Blas, USA Today