Jude Law and Sienna Miller are buying a £3.5 mln house
The couple - who reconciled their romance 10 months ago after a three-year break - are said to be really "happy" with the London property and are just waiting for the paperwork to be finalised.
A source said: "A friend of a friend had a brilliant place in north London going and, after two viewings, they decided to go for it - and put an offer in.
"Now it`s just a matter of getting the offer accepted, signing the paperwork and exchanging contracts. Both of them are really happy. Things are going great."
The couple first dated from December 2004 to November 2006, separating when Jude - who has kids Rafferty, 13, Rudy, nine, and seven-year-old Iris with ex-wife Sadie Frost - allegedly cheated on her with his children`s nanny.
However, since reconciling late last year, the couple have grown increasingly close again and have now decided to cement their love by making a home together.
The friend added to Britain`s Daily Mirror newspaper: "They`ve lived together before, first time around, but since rekindling their romance, have been shacking up on an ad hoc basis.
"Jude suggested they look for a place together - a completely neutral place with no old memories. Somewhere they can start afresh and turn into a loving home."