Rupert Murdoch and third-wife Wendi Deng agree to divorce with 'mutual respect'

Media tycoon Rupert Murdoch and his third wife Wendi Deng have reached a divorce settlement to end their 14-year marriage with mutual respect.

Murdoch and Deng shook hands and briefly hugged after a brief proceeding in a Manhattan court.

According to the Sydney Morning Herald, Deng is expected to keep the couple's home in Beijing and their three-level Fifth Avenue penthouse apartment in Manhattan, purchased in 2004 for 44 million dollars.

In a statement released through a publicist, the two said that they have reached an amicable settlement of all matters relating to their divorce.

The statement added that the two were moving forward with mutual respect and a shared interest in the health and happiness of their two daughters.

The divorce filing stated the 'relationship between husband and wife has broken down irretrievably'.

The divorce is not technically final, as it will happen after state Supreme Court Justice Ellen Gesmer signs some yet-to-be-submitted paperwork, the report added.