The model – who raises three children, Harvey, seven, Junior, four, and two-year-old Princess Tiaamii, with the 'Behind Closed Doors' singer – has been apologising for her behaviour towards him and her antics since they split in May.
A source said: "Since Kate has returned to the country from Australia she seems to have had a bit of a turnaround. And Pete's noticed it. Now they chat to each other when they make their daily call about the children.
"The one thing they both agree on is how to behave with, and for, the children. In the past it was difficult for them to talk to each other, even though they would always call to speak to the kids. They both lost it a few times as their war of words reached fever pitch."
Last week, Katie, 31, dumped her cage-fighter ex-boyfriend Alex Reid, 34, on TV shortly after she quit British reality show 'I'm A Celebrity… Get Me Out Of Here', which is filmed in Australia.
Her decision has also had a positive effect on her relationship with Pete, 36.
The source added to Britain's Daily Star newspaper: "They've been much more amicable since she came back from Australia. It is like the air has suddenly been cleared."
Yesterday (30.11.09), Peter vowed to always put his children first.
He said: "I just want the kids to be happy and settled and I'll do anything within my power to make sure that's the case."
His spokeswoman Claire Powell – who also represented Katie before she split from Pete – confirmed the pair are in regular communication.
She said: "Pete and Kate have clear communication because of their children. He is not avoiding her, the children need both their mum and dad."