Nordegren, 30, has been spotted "kissing and cuddling" a 35-year-old South African classmate by a fellow student at Rollins College in Winter Park, Fla., where the former Mrs. Woods is studying psychology part-time.
"I don't know if it's gone further," the insider added about the couple.
The former Swedish model reportedly received a $110 million settlement in her August divorce from Woods. Their marriage crumpled after details of the athlete's torrid affairs became public in November 2009.
Nordegren, who splits her time between Florida and her native Sweden, and Woods, 34, share custody of their two children, three-year-old daughter Sam and one-year-old son Charlie.