New York, NY (CNS) - Cameron Diaz and John Mayer have reportedly rekindled their romance.

The pair - who were first romantically linked in August - were spotted looking "loved-up and cozy" as they cuddled by a fireplace at New York's Bowery Hotel before leaving together at midnight.

A source told the New York Daily News newspaper, "They were all over each other and looked very loved-up and cozy. There were completely wrapped up in each other and there was no doubt they were more than just friends."

Rumors the pair were dating again first surfaced at the end of last month when they were spotted arriving together at New York's GoldBar.

An onlooker claimed the couple spent the evening "dirty dancing and grinding against each other on the dance floor" before leaving together at 4am.

Diaz split from long-term partner Justin Timberlake in January, while Mayer enjoyed a brief relationship with 'Dukes of Hazzard' beauty Jessica Simpson earlier this year.

Diaz has recently been romantically linked to "Wedding Crashers" star Bradley Cooper, while Mayer was rumored to be dating "The Kingdom" star Minka Kelly in October.