There have been rumours that the couple have been having problems and they have been spending a lot of time apart.
But OK! magazine says the Cruises have now "reached a deal on expanding their family".
Seems like a strange way of putting it. Do you think they've had solicitors draw up a contract? It wouldn't surprise me...
The couple already have one daughter, Suri, who is now three years old.
They had reportedly been arguing about whether to have another child, with Cruise keen to get on with it before he gets too old, while Holmes wanted to concentrate on her work.
Holmes has been shooting the indie film The Romantics in New York while her husband has been overseas filming the action-romance Knight & Day with Cameron Diaz.
A "pal" has now told OK! magazine that although work is Holmes' first priority at the moment, she plans to get pregnant sometime in the new year.
"She no longer feels like she's just Mrs Cruise. She's her own person again," the pal told OK!
"She and Tom have their disagreements, but deep down they love each other very much. That's what is important."
Earlier this year a source was quoted as saying: "Katie was resentful about having to put movies on hold after Suri. She wants another hit before she has a second baby."
It has been reported that the Cruises have already spent $3 million on clothes for Suri. Do you think the second child will get her hand-me-downs? No, I don't either...
OK! magazine also says Cruise's ex, Nicole Kidman, is also ready to expand her family. Are they in competition with each other?