This was done to ensure that the best interests of their children were protected

Statement from couple's lawyers

Lawyers for the couple also confirmed that the agreement brings to a conclusion what threatened to become a bitter court battle between the A-list stars estimated �125m fortune.

Kidman and Cruise were granted a fast-track divorce in August, after splitting up in February.

A statement issued by lawyers said the Hollywood stars had "come to an amicable, full resolution of all issues".

It added: "This was done to ensure that the best interests of their children were protected."

'Family'

The couple were married in 1990 and were considered one of the most stable in the US film industry.

Kidman and Cruise have two adopted children, who are currently living in Sydney with their mother.

Tom Cruise is now in a relationship with Penelope Cruz

Hours after the settlement was agreed, Cruise appeared on NBC's Access Hollywood and told how he still cared for his ex-wife.

"We're family. We're going to raise these kids together," Cruise said.

"We're now just the parents that are no longer together but we still care about each other and there is a lot of respect and a lot of love there.

"We love our kids and so we're going to do that together."

He also said he had shared some "extraordinary moments" with Kidman.

Romance

The couple's fortune includes five houses, two aeroplanes and jewellery.

California law states that the assets of a marriage must be divided equally if it can be proved that the couple were together for 10 years or more.

That could mean Kidman received a settlement greater than the �69m Amy Irving took with her after her divorce from Steven Spielberg with in 1989.

Both Cruise and Kidman are said to have been romantically linked with other people since their split.

But while speculation continues to circulate around Kidman's love life, Cruise has openly declared his relationship with Spanish actress Penelope Cruz.