Hollywood starlet Penelope Cruz is suing an Australian magazine for defamation.

The suit relates to a story in Australia's NEW IDEA magazine about Cruz's relationship with Hollywood star Tom Cruise.

Lawyers for the 28-year-old actress have filed defamation proceedings in the New South Wales Supreme Court.

The case is scheduled to appear before the court on 30 May (03).

Cruz's legal firm GADENS LAWYERS say, "The proceedings state that the article contains a number of false and defamatory statements concerning Ms Cruz.

"Ms Cruz seeks substantial damages and is confident that legal proceedings will vindicate her reputation."

The VANILLA SKY star has been seeing Cruise after he split from his wife Nicole Kidman.