LOS ANGELES (AP) _ After more than a week of haggling over costs, Tom Cruise and Paramount Pictures have reached a deal that will allow ``Mission: Impossible 3'' to move ahead with filming in Italy next month.
Paramount Pictures chairman and chief executive officer Brad Grey announced the agreement in a statement Tuesday. Filming will start July 18 on the third installment in the action-adventure series, which is a remake of a popular 1960s TV show.
The film will be directed by J.J. Abrams, who joined the project last August, and will be produced by Cruise and his partner, Paula Wagner.
``Tom's history with Paramount has made for one of Hollywood's most successful relationships; the opportunity to continue our collaboration with him on `Mission: Impossible 3' is everything anyone in show business could hope for,'' Grey said.
The deal fell into place after Cruise agreed to adjust his lucrative profit participation deal and shave a budget that had swelled to as much as $185 million, the Los Angeles Times reported.
The movie will feature Cruise and co-stars Ving Rhames, Jonathan Rhys Meyers, Michelle Monaghan and Philip Seymour Hoffman. It is set for release on May 5, 2006.
Abrams is one of the creators of ABC's ``Lost'' and ``Alias.''
The first ``Mission: Impossible'' movie came out in 1996 and was directed by Brian De Palma. John Woo directed ``Mission: Impossible II,'' which was released in 2000.