Actors Blake Lively and Penn Badgely's off-screen relationship has been confirmed - by their Gossip Girl co-star Kelly Rutherford.

The two stars vehemently denied they were an item in January after rumors surfaced claiming they had been dating since Lively split from her ex boyfriend, actor Kelly Bratz. And, even though the pair was photographed frolicking on a beach in Mexico seemingly enjoying a romantic holiday last month, Lively insisted she was just friends with Badgley.

She told reporters, "Any male friend is obviously a 'romance alert', but I've always been friends with boys my whole life. It's silly." However, former Melrose Place star Rutherford, who plays the mother of Lively's character Serena van der Woodsen on the show, has confirmed the relationship.

When asked what she thought of the young stars as a couple, she gave her seal of approval, saying: "I think they're lovely."

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(This news article provided by World Entertainment News Network)