Beyonce and Jay Z are renting a Los Angeles home for a bargain $150,000 a month.

The couple - who have three-year-old daughter Blue Ivy together - have been unable to find a property to buy that is suitable for their needs, so have agreed a 12-month deal to return to the Holmby Hills mansion they were based in last summer.

According to TMZ, the pair dealt directly with the owners of the seven-bedroom, nine-bathroom 16,000 sq ft property so were able to negotiate a discount from $200,000 to $150,000 a month, based on them signing a longer lease.

It was recently claimed the couple's friend Gwyneth Paltrow was instrumental in their decision to relocate from New York City to California as the 'Iron Man 3' star advised it would be a better place to raise a family.

A source said: ''Beyoncé and Jay Z are making LA their permanent home based a lot on the advice of their friends. The friend that really influenced them to move was Gwyneth Paltrow.''

The 42-year-old actress, who moved back to LA from London with her two children, Apple, 10, and Moses, eight, and estranged husband Chris Martin in 2013, believes California offers a better quality of life.

The insider said: ''Gwyneth was telling Jay and Bey about the quality of life for her kids in LA and really swayed Beyoncé and Jay to make the move. It's all for Blue Ivy.''

The 'Pretty Hurts' hitmaker, 33, and the 45-year-old rapper might also be sending Blue to the same school as Gwyneth's children.

Another source recently revealed the duo, who plan to keep their apartment in New York, have already enrolled their only child in a private school that costs $15,080 per year.