The pair were snapped strolling hand in hand through Rome, prompting their publicists to admit they had been together “for a while”.
They were photographed this week together in Rome, where Cruise will today receive a lifetime achievement award at the Italian equivalent of the Academy Awards, the David di Donatello Awards.
Holmes’ public relations firm - Baker Winokur Ryder - confirmed that the two were dating.
Cruise, 42, has been married to actresses Mimi Rogers and Nicole Kidman. He had a three-year relationship with Penelope Cruz which ended last year. Holmes, 16 years his junior, recently split with American Pie actor Chris Klein, calling off their engagement after five years together.
She shot to fame as Joey Potter in teen drama Dawson’s Creek before appearing in a string of films including Wonder Boys and Pieces of April. She co-stars opposite Christian Bale in this summer’s Batman Begins.