Cameron Diaz has splashed out on a $10 million home.

The 'Shrek' actress has reportedly bought a sprawling three-acre mansion in a private gated community in Beverly Hills, California.

The 5,000 sq ft single storey English cottage-style property comes with six-and-a-half bathrooms, a large open plan living room with two seating areas and a dining room.

The grounds include a detached three bedroom guesthouse, a tennis court and swimming pool with hot tub.

The Hollywood mansion was once owned by actress Candice Bergen, 64, and many famous faces live nearby.

Cameron's new neighbours include newlyweds Penelope Cruz and Javier Bardem, Nicole Kidman and Keith Urban, Jessica Simpson and Madonna's manager Guy Oseary.

The 37-year-old actress - who is rumoured to be dating baseball star Alex Rodriguez - also owns a $1.35million house nearby.

Despite her new purchase, Cameron recently revealed that she wants to move away from Hollywood to live on a farm.

She said: "I've always been on the move so what I'd love to do is spend a whole year in one place, on a farm.

"I'd get to raise my own crops and livestock, and for once just see how life is cultivated."