The Dawson's Creek actress and her eight-year-old daughter are said to be leaving New York for a $3.79million home in Calabasas, California.
According to TMZ, Katie has chosen to make the move to further her career, and also because she feels LA is a better place to raise Suri than the Big Apple.
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The website reports that the neighbourhood Katie has chosen is inhabited by lots of youngsters around Suri's age, and there are also good schools in the area.
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Katie lived in Beverly Hills prior to her split from Tom Cruise, when she moved to Chelsea, Manhattan.
The Ohio-born star will no doubt miss New York as she has previously spoken of her love for the city, and was a regular at sporting events with her daughter.
"I love being able to experience so many cultural things in one day," she said. "I live very close to the gallery district, and then at night I'll find myself at Lincoln Center at a ballet. I love going to Knicks games. And I love taking the subway."
It's believed that Katie and Suri have already moved to Calabasas, which is also home to Katherine Jackson, Toni Braxton, Kourtney Kardashian and Scott Disick.