Updated

Ryan Phillippe appears to be dating Australian actress Abbie Cornish — the woman accused of breaking up his marriage to Reese Witherspoon, the New York Daily News reported.

A fling during filming of their movie "Stop Loss" — which Cornish denied at the time — was widely credited with ending his seven-year marriage to Witherspoon.

But pictures taken last week at a friend's house in Beverly Hills (and published in Thursday's print edition of the Daily News) show the two seem to be an item.

Click here for the Daily News report

"They are a real couple," a source close to the pair told the News' Gatecrasher column. "[The relationship] has really grown. She's spending time with his kids [Ava, 8, and Deacon, 4] — it's not like she's on the side. She's part of the family."

The couple was spotted getting Starbucks coffee together and driving on the Pacific Coast Highway on Friday before Phillippe picked up the kids from school. And on Sunday, the four of them went shopping for Christmas decorations.

"Ava seemed very comfortable with Abbie," a witness told Us Weekly. "Ava picked a wreath, and Abbie put it around her head as a joke. They both were laughing."

Click here for the Us Weekly report

Another source told the News: "Going out together and leaking a few photos is their discreet way of letting the public know it's official. It's not like you can send out a press release about these things."