Attorneys for Holmes confirmed in a statement Monday the agreement had been signed.
"The case has been settled and the agreement has been signed. We are thrilled for Katie and her family and are excited to watch as she embarks on the next chapter of her life," attorney Jonathan Wolfe said.
Both Cruise and Holmes issued a joint statement, saying:
"We are committed to working together as parents to accomplishing what is in our daughter Suri's best interests. We want to keep matters affecting our family private and express our respect for each other's commitment to each of our respective beliefs and support each other's roles as parents."
It's a speedy resolution after Holmes filed for divorce just over a week ago and requested sole custody of 6-year-old Suri. The couple had been married for nearly six years.
The actress was spotted much of the weekend going in and out of her attorneys' office.