Blake Lively, Leonardo DiCaprio Together in Italy

Newly single Leonardo DiCaprio was spotted Sunday in Portofino, Italy with Blake Lively.

DiCaprio, 36, and Lively, 23, were caught hugging on a yacht Tuesday during the Cannes Film Festival.

Earlier this month, sources confirmed to Us Weekly that DiCaprio and supermodel Bar Rafaeli, 25, ended their five year relationship.

So are things really over for the Oscar nominated actor and Rafaeli? "They do this every two years," a source pointed out to Us. "They could be back together next week."

Lively ended things with Penn Badgley, her beau of three years and Gossip Girl costar, in September 2010.

Credit: Us Magazine

Blake Lively - Magically White Photo Shoot

Blake Lively - Magically White Photo Shoot

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Leonardo DiCaprio Cozies Up To Blake Lively!

Enjoying the beautiful weather, Leonardo DiCaprio was spotted spending some time with Blake Lively in Cannes, France today (May 17).

The “Inception” actor and the “Gossip Girl” starlet added fuel to the relationship rumors by getting a little touchy-feely while aboard Steven Spielberg’s luxury boat.

Credit: Celebrity Gossip

Blake Lively: Chanel Collection Croisiere Show

Blake Lively takes a photograph as the sun goes down during the Chanel Collection Croisiere Show 2011-12 at the Hotel du Cap on May 9, 2011 in Cap d'Antibes, France.

Credit: Zimbio

Photos by Dominique Charriau/Getty Images Europe

Blake Lively: Costume Institute Gala At The MET

Blake Lively attends the "Alexander McQueen: Savage Beauty" Costume Institute Gala at The Metropolitan Museum of Art on May 2, 2011 in New York City. Also pictured, Karl Lagerfield.

Credit: Zimbio

Photos by Stephen Lovekin/Getty Images North America

HAIR POLL: Blake Lively Blonde VS Redheaded

Red alert! Gossip Girl star Blake Lively gives fans something to talk about by trading her signature blonde hair for a strawberry hue.

Which hair color is best on Blake Lively?
Blonde
Red

View Results

Credit: PEOPLE (Alex Apatoff)

Blake Lively Goes Redheaded At Time 100 Gala

She’s always up for a good time, and last night (April 26) Blake Lively was spotted at the Time 100 Gala in New York City.

The “Sisterhood of the Traveling Pants” babe showed off her sexy new red hairdo as she posed for the paparazzi in a Zuhair Murad Haute Couture evening gown.

Credit: Celebrity Gossip

Lindsay Lohan -- HANDPICKED By Victoria Gotti

Lindsay Lohan beat out Blake Lively AND Sienna Miller for her new role as Victoria Gotti -- and TMZ has learned ... Victoria herself made sure that happened.

Sources close to the production tell TMZ, producers were considering both Blake and Sienna for the role -- but John Gotti's famously blonde daughter wasn't having it, insisting Lindsay get the role instead ... and producers loved the idea.

Not all that surprising -- according to sources, Victoria is a good friend of the Lohan family ... and she often spends time with them on Long Island.

Meanwhile, Lindsay is currently in L.A. auditioning for "Superman" -- but we're told she already has a plane ticket back to NYC for April 12th ... to close the Gotti deal for good.

Credit: TMZ