The remarkably swift deal, which both of them have signed, was concluded just 11 days after Holmes filed for divorce and followed marathon negotiations between two teams of lawyers over the weekend.
Cruise is thought to have been especially keen to avoid a drawn-out court case that could have highlighted details about him and Scientology. The constroversial church has repeatedly been cited as a reason for the couple's separation and it has faced a torrent of bad publicity in the past fortnight.
It is understood their six-year-old daughter Suri will live primarily with Holmes, but that Cruise will have generous visitation rights and be a full part of the child's life.
Holmes, who was raised a Catholic, is thought to have secured her wish that Suri not be brought up in the Church of Scientology.
On one visit to her lawyers' offices in New York at the weekend Holmes spent six hours discussing the deal, which also includes a property settlement.
