Sir Paul McCartney has decided to go on a family holiday with his estranged wife Heather Mills.

The former Beatle agreed to a suggestion from Heather that they should visit New York for "family bonding time" with their three-year-old daughter Bea.

McCartney and Mills are believed to have called a truce in May, following months of bitterness over their divorce. One recent report even suggested that they had agreed to be neighbours for the sake of their child.

A source told the News of the World: "Incredible as it may seem the idea looks like a goer. It won't be a conventional family holiday, there's still tension. But if they go to Macca's Hamptons mansion in New York, as they're thinking, they'll be away from prying eyes and pretty much on neutral ground."