TOM CRUISE and KATIE HOLMES are "incredibly happy" since splitting last year (12), according to director ADAM SHANKMAN.

Holmes stunned Hollywood when she filed for divorce from the Top Gun actor, the father of her six-year-old daughter Suri, in June (12) after five years of marriage.

The estranged couple reached a divorce settlement less than a month later and the divorce case was closed in August (12) - and Shankman, who directed Cruise in movie musical Rock of Ages, insists the stars are doing well since their split.

He tells UsMagazine.com, "They are incredibly happy. I've just been emailing with him (Cruise). He's coming back. He's shooting (All You Need Is Kill) in London and seems as happy as a clam. I know he sees his daughter.

"Katie seems really happy. You just fight through all the noise. And it's noisy!"