Prince Harry back with Chelsy Davy?

London: Rumours are doing the rounds that Prince Harry has reunited with his old flame Chelsy Davy, after both of them were reportedly spotted at a birthday party for Princess Eugenie at Windsor Castle on Friday night.

"Prince Harry was there and so was Chelsy. Clearly they are still close. They appeared at ease with each other and were chatting happily together. Whether or not they have rekindled their relationship is anyone`s guess but they certainly seemed very friendly," the `Sunday Express` quoted a royal insider as saying.

The 27-year-old Prince was wearing a "love pendant" given to him by Chelsy, 26, during their on-off relationship which ended in 2009. He was spotted wearing the silver pendant on a leather string while he was in Brazil earlier this month.

Speaking at the end of his tour, Harry revealed how he feared he might never find his fairytale princess.

He told American network CBS he found it hard to meet a woman not scared by his royal status, saying, "As any girl would ever tell you, it`s sort of, `Oh my god, he`s a Prince`.

The job that it entails -- I mean look at me, I`m 27 years old. I`m not so much searching for someone to fulfil the role, but obviously, you know, finding someone that would be willing to take it on."

Chelsy, meanwhile, has recently been linked to one of Harry`s friends, the art dealer Blaise Patrick.

A source said: "Harry and Chelsy split very amicably and have always remained friends. There have been times since they broke up that they have been more than that. They`ve never stopped loving each other but being together is difficult with
Harry`s military career and the publicity any relationship attracts."

Buckingham Palace refused to comment, saying the party was a "completely private event".