“Tom is very happy and relieved that he is moving forward,” a source close to Cruise tells media website. “His priority is being a good father and this settlement will make sure that continues.”

The news comes just two months after Holmes and Cruise announced the surprising news that they were splitting. The stars reached an agreement in July less than two weeks after that.

The terms of the agreement are confidential and will remain so. Holmes filed for divorce in June.

Cruise, who has been focusing fully on his career since his split from Katie Holmes has lost 14lbs after his split with Holmes. He is being urged by loved ones to slow down his work schedule for his health

“Tom's friends and family have urged him to take a break, but he has brushed off their concern. He is refusing to slow down and is trying to soldier on. He doesn't seem to be himself. He hasn't been working out like he normally does and doesn't appear to be eating well at all. His clothes just hang off him,” a source said.