The former One Direction star and Olivia say they are “taking a break” from each other.
Harry, 28, began dating the 38-year-old while they were making sci-fi film Don’t Worry Darling, which she also directed.
A source close to the pair said their separation after almost two years together is down to them having “different priorities that are keeping them apart”.
The unnamed source told People Magazine: "He’s still touring and is now going abroad. She is focusing on her kids and her work in Los Angeles.
"It’s a very amicable decision. They’re still very close friends.
"They’re on a break. It’s impossible to have a relationship when he’s in every continent next year and Olivia has her job and her kids.
"This is the right thing for both of them."
Harry is currently preparing for the South American leg of his latest tour while Olivia is said to be planning to shoot a documentary in London.
Olivia has been in a custody battle with her former fiancé, Ted Lasso star Jason Sudeikis, 47, over their children, Otis, eight, and Daisy, six.