AceShowbiz -

Rumors of reconciliation have continued to swirl around Arnold Schwarzenegger and his wife Maria Shriver ever since they announced their separation after 25 years of marriage in May 2011. The latest report concerning the estranged couple, however, shot down hope that they will end up together again.

According to TMZ, Schwarzenegger and Shriver are "very close" in reaching a financial settlement. Sources close to the former California governor additionally claimed that although the 64-year-old would love to reconcile with his 56-year-old wife, he has now accepted that their marriage is likely to end in a divorce.

The gossip site suggested that the divorce between Schwarzenegger and Shriver is looming given that the two have created separate lives. It is also noted that "The Expendables II" actor gave up hope of reconciliation, believing that friends of his estranged wife have talked her into staying away from him.

Schwarzenegger announced his separation from Shriver in early May. Days later, he came out with a confession that he has fathered a child with a household staffer who recently retired after 20 years of service. Shriver filed for divorce in early July, but the estranged couple were still spotted going out together on several occasions.

Around Christmas weekend, words came out that Shriver, who is a devout Roman Catholic, told friends that she doesn't want a divorce because her religious beliefs do not condone it. In March 2012, New York Post reported that the pair "are having marriage counseling to work through their issues to get back together."