Nordegren had called it quits with golfing star Woods following his affairs with a number of women. But an eyewitness from their Orlando neighborhood told Radar Online on Tuesday it appeared they have reconciled.
Nordegren, 30, met up with Woods after playing tennis on Monday where they were seen openly affectionate with each other, according to the source.
"They were hugging and they were kissing right out in the open," the source said.
"Elin is certainly a lot more relaxed these days and so is he.
"People in the neighborhood are getting used to seeing them together again."
Radar Online previously reported that Nordegren had agreed to move back in with Woods after three months of estrangement and therapy.
"They've come a long, long way," the source said. "There was a time when she wouldn't even look at him."
However Nordegren was still not wearing her wedding ring Tuesday when spotted at a spa enjoying manicures with her two-year-old daughter Sam, People magazine reported.
Meanwhile Woods, 34, is reportedly working on his golf game with coach Hank Haney this week, according to Golf Digest and the Golf Channel, indicating that a comeback could be on the cards soon.
Woods took an indefinite hiatus from competitive golf in the wake of the sex scandal that has engulfed him since late November, but the work could indicate he is preparing his game to compete at next month's Masters, AFP reported.