Green and Fox – who split last summer – jetted off to the Four Seasons Hualalai in Hawaii last week with their sons, Noah Shannon, 3, and Bodhi Ransom, 2. The family vacation came just days after news broke that the actress is pregnant with the couple's third child. The resort is the same place the pair wed in 2010.
"They are doing great and had the best vacation with the kids. It's their favorite resort. They have so many happy memories from Hawaii and wanted to relax for a few days together," a source close to the couple tells PEOPLE.
While the pair haven't canceled the split just yet, the insider tells PEOPLE that Green hopes Fox will call off the divorce, and that the tropical trip was meant to help them figure things out after the surprise pregnancy.
"They had the best vacation and are reconsidering the divorce," said the source. "They don't want their kids to grow up in a broken home. Brian is showing Megan that he really wants them to stay married. It seems Megan is finally agreeing."
The source adds that Green is "very happy" and that both are "excited about adding another baby to the family."
Megan Fox's Changing Looks!
Green, 42, and Fox, 29, have remained close in the months since she filed for divorce last August, and have been spotted on numerous outings together.
A family source previously told PEOPLE the initial split was caused by disagreements over how to balance family life and work.