JAKE GYLLENHAAL and REESE WITHERSPOON have taken their romance to the next level - the actor has started enjoying days out with his new girlfriend’s kids.

The stars were spotted hiking with eight-year-old Ava and Deacon, four, in Malibu, California just after Christmas (07).

A fellow hiker says, "They wore matching Boston Red Sox baseball caps and Deacon was sitting on Jake’s shoulders. They looked like a happy family. You’d think the kids were Jake’s." The Rendition co-stars started dating last year (07) after Witherspoon split from husband Ryan Phillippe.