Catherine Zeta-Jones and Michael Douglas appeared ''really happy'' at the Monte Cristo Awards this week.

The couple - who announced they were taking a temporary ''break'' from their 13-year marriage last August - seemed content in one another's company at the New York event and friends say their relationship seems well and truly back on track.

A source told People magazine: ''They looked really happy to be together.

''Things seem to be going really well for them. I knew they were going to work as hard as they could on their marriage, especially for the kids. It's a good thing.''

Catherine and Michael - who have son Dylan, 13, and daughter Carys, 11 together - are said to have impressed friends with their dedication to making their union work.

A source said recently: ''It is so easy to just give up. But they wanted to put in the work. I'm really happy for them.''

Michael's mother, Diana Douglas, first confirmed that he and Catherine were back together last month.

She said: ''They are together. I knew they would work it out. They're both gentle people, not hysterical. They're always very affectionate and easy with each other. I figured the more everybody stayed out of it the better.''

The couple had a difficult few years during which 'Red 2' star Catherine admitted that she suffers from bipolar disorder - which led to her spending time in rehab for depression - and Michael battled tongue cancer..