DiCaprio, Lively photographed holding hands in Monaco

Last Updated: Jun 02, 2011, 09:14 AM IST

London: Actor Leonardo DiCaprio has fuelled rumours that he is dating actress Blake Lively after the two were photographed holding hands during a night out in Monaco.

The stars sparked dating speculation last month when they were spotted together in New York, and just days later during France`s Cannes Film Festival they were seen embracing on a yacht.

Gossip about a new Hollywood romance has now stepped up after they were snapped walking hand-in-hand in Monte Carlo Friday night, reports dailystar.co.uk.

It has been reported that the "Titanic" star even took Lively as his guest to a Grand Prix party Sunday.

"He looked very in love. Her face lit up when Leo was talking. He had introduced Blake as his girlfriend. I would say they`re totally smitten," said a source.