Katie Holmes and Tom Cruise look as though they have agreed to a ceasefire while their lawyers work out a settlement in regards to the hotly discussed divorce proceedings.

Sources close to the two, and familiar with the situation, have told TMZ that the pair are looking to settle the whole thing outside of court, with no court hearing scheduled at all, unless that is, if the negotiations fall apart. TMZ has also reported that the representative lawyers are negotiating child custody, visitation, child support and a property settlement and it looks as though the whole divorce could be settled in New York, rather than the Tom-favoured state of California - where he has a much better chance of winning joint custody of Suri.

The two are clearly ready to put any tension and ill-feeling for one another to one side as they look to settle what's best for little Suri, with Tom even looking as though he is ready to waive his right of joint custodian for the sake of what's best.

Kate was spotted heading to her lawyer's office early yesterday morning with a bodyguard on hand, but understandably so, declined to comment on the situation whilst it is still on going.