The Los Angeles Times said the movie stars had spent more than £2m on a nine-bedroom, five-floor home in Dulwich Village, south of the Thames.

The turn-of-the-century house is said to be close to two parks and a golf course, and has a driveway big enough for 10 cars.

Its proximity to the prestigious Dulwich College boys' school has prompted speculation that the couple might be planning to have their two adoptive children educated in the capital.

Celebrity trend

If they did go to school in London, six-year-old Isabella and Connor, aged four, would be follow in the footsteps of Madonna's daughter Lourdes. The two-year-old is reportedly set to attend a private school in south-west London.

Cruise and Kidman also own homes in Los Angeles and Australia but they have been largely based in England for almost three years.

While they were filming Stanley Kubrick's Eyes Wide Shut they rented a home in Hertfordshire.