"She misses her family terribly and now is the time to move," added the source. "Her children have English accents and once they start senior school Gwyneth says the family will likely return to the UK because she believes that the English education system is second to none."
The author of healthy recipe book, It's All Good, has said that the move is in time for her to to enroll her children, Apple, nine and Moses, 7, into a school for the coming academic year.
The Iron Man 3 actress was born and raised in Los Angeles by her parents and her mother, actress Blythe Danner, still lives there as does her brother, Jake Paltrow.
Gwyneth's beloved father, director Bruce Paltrow, passed away in 2003 during a holiday to Rome for his daughter's 30th birthday.
Gwyneth's mother, Blythe Danner, and brother, Jake Paltrow (pictured above) live in California
Chris and Gwyneth are likely to move into the £6.6million home they own in the Hollywood Hills.
The house, which is located in the exclusive Brentwood area, is just one of a number of properties own by the couple.
The famous couple also reportedly have a £4.6million home in North London, a £3.2million penthouse apartment in New York and a £3.4million house in the Hamptons.