Holmes filed divorce papers in New York last Friday (June 29), apparently "blindsiding" Cruise, who was filming a movie in Iceland at the time.
Sources have told TMZ that the pair's lawyers are currently negotiating a divorce settlement, and that they currently have no plans to take the case to court.
The insiders, describing the talks as "calm", went on to say that attorneys are currently negotiating child support, property settlement, child custody and visitation rights.
It was also claimed that Cruise may halt his previous plans to file divorce proceedings in California, where he would be more likely to win joint custody of the couple's 6-year-old daughter Suri Cruise, if the private talks go well.
This is the Mission: Impossible star's third divorce. He has previously been married to actresses Nicole Kidman and Mimi Rogers.
Photo gallery - Tom Cruise and Katie Holmes - their relationship in pictures: