The 38-year-old and her husband, Coldplay frontman Chris Martin, 34, are said to be planning to live in London permanently after enrolling Apple, seven, and Moses, five, at a private school in the British capital with fees of £20,000 a year.
A source told British newspaper the News of the World: 'Gwyneth was schooled in New York and had hoped that this would be the same for her kids.
'But she's grown to love London and understands that this is the best move for the family right now.
'Apple has already started school and Gwyneth is treated just like any other mum, despite being a Hollywood movie star.'
The famous couple will continue to travel around the globe for work but will use their £5 million Belsize Park house in north London as their main base.