New York: Media baron Rupert Murdoch and his soon-to-be-ex-wife said they were parting with "mutual respect" on Wednesday after telling a judge they had reached a divorce deal.

The chairman of News Corp and 21st Century Fox and his wife of 14 years, Wendi Deng, shook hands and briefly hugged after a brief proceeding in a Manhattan court. The terms of the agreement weren't disclosed in court.

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 a then-record $US44 million.

"We are pleased to announce that we have reached an amicable settlement of all matters relating to our divorce," the two said in a statement released through a publicist.