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Blake Lively, Leonardo DiCaprio Together in Italy

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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