Kaia Gerber and Austin Butler are definitely more than friends.
A source divulged to PEOPLE on Wednesday that the model, 20, and the actor, 30, 'are in fact dating' and that 'all of her 'friends think they are so adorable' together.
'It's a total step up from her last relationship and she knows it too," said the insider, who was referencing Kaia's ex Jacob Elordi, 24, who she split from last month.
They continued: 'She seems really happy. All of her friends think he's really cute.'
Kaia and Austin first sparked romance rumors in a series of snapshots obtained exclusively by DailyMail.com on Sunday that showed the pair looking cozy while attending a yoga class in LA.
Though their faces were concealed, the two appeared to be engaged in conversation as they strolled closely together down the sidewalk with boxes of water hydrating them after their workout.
The duo headed inside Kaia's car, where Austin took the driver's seat.
The outing came less than a month after it was revealed in mid-November that Gerber had split from Elordi after over a year of dating.
They were said to have ended things on 'amicable' terms, according to an insider with Page Six.
Since the split, Kaia has since scrubbed any trace of Jacob from her social media, but the pair still appear to follow one another.
The duo only made their relationship red carpet official in September, while attending The Academy Museum Of Motion Pictures Opening Gala on the 25th.
The last time they were spotted together was November 1st, seen leaving a Halloween party in costume.
In a recent interview with Esquire, Jacob refused to talk about Kaia when he was asked if his girlfriend had aided him in his loneliness.
'Oh, no, I don't really want to talk about my relationship,' Jacob said before changing the subject.
The interview, which was published on November 30, appeared to have been conducted before news emerged that the Aussie actor had split from Kaia.
However, he did speak highly of her while revealing how she taught him how to cope with fame during an interview with the January/February issue of Men's Health.
In a recent interview with Esquire, Jacob refused to talk about Kaia when he was asked if his girlfriend had aided him in his loneliness.
'Oh, no, I don't really want to talk about my relationship,' Jacob said before changing the subject.
The interview, which was published on November 30, appeared to have been conducted before news emerged that the Aussie actor had split from Kaia.
However, he did speak highly of her while revealing how she taught him how to cope with fame during an interview with the January/February issue of Men's Health.
'She handles herself wonderfully publicly, and I've learned so much from her about how to handle it, how to deal with it and just kind of be whatever about it, you know?' said the star.
In exclusive photos obtained by DailyMail.com, Jacob was spotted grabbing coffee with Olivia Jade in LA's trendy Silver Lake neighborhood on Sunday.
Austin was previously in a long-term relationship with actress Vanessa Hudgens, with the pair dating from 2011 to 2019.
The former couple were said to have parted ways near the end of 2019 with Austin reportedly absent from her birthday celebrations in December.
She told the November 2018 issue of Women's Health that she was in no rush to wed.
'I want to get married, travel, then have kids — probably in my late 30s,' she explained at the time. 'Everyone's clock is different.'
Their split was confirmed in January 2020 when a source told Us Weekly: 'Vanessa and Austin are officially broken up, and Vanessa has been telling those close to her about their breakup.'
In August, he was spotted sharing a kiss with model Lily-Rose Depp during a date in London.
