Tom Cruise and Katie Holmes have sparked rumours they are planning to have another baby.

The couple, who already have a one-year-old daughter Suri, are moving into a new $35 million Beverly Hills mansion next month and are converting one of the seven bedrooms into a nursery, seemingly in preparation for a new arrival.

A source told Life and Style Weekly magazine: "Tom told Katie how much he loves their little girl and how he wants to have another baby when she's ready.

"She told him she's ready. And in his typically enthusiastic fashion, Tom's moving full steam ahead preparing for a new arrival."

Katie, 28, has made no secret of her happiness at becoming a mother.

The actress, who gave birth to Suri in April 2006, says motherhood came easily.

She said: "I love it! Suri is doing really, really well. She's a beautiful little girl. I feel so honoured to be her mom, really."