Tom Cruise has hit back at Paramount, following their decision not to renew his contract.

Paramount announced their decision this morning, citing Cruise's erratic personal behavior as the reason for the move.

However Cruise and his business partner Paula Wagner claim they withdrew their services from the company, rather than the other way around.

Wagner commented: "For some reason, Paramount has chosen to negotiate in the press. It's not really the most businesslike approach. With War of the Worlds and Mission: Impossible 3, Cruise helped earn nearly $1 billion for Paramount this year alone."

The actor's agent Rick Nicita added his opinion: "What this says about Paramount is self-evident. It was graceless and it was shocking and offensive."