The 32-year-old actor has filed for divorce from his wife Mia Goth - whom he tied the knot with at a ceremony in Las Vegas two years ago - and is now said to be ''very happy'' in his new relationship with the 30-year-old singer.
A friend close to the couple told the MailOnline: ''We're very happy, we're having a nice time.''
As for his ''amicable'' split from Mia, a spokesperson for the 'Lawless' star told E! News: ''Shia and Mia have filed for divorce. The separation is amicable and all details pertaining to the divorce proceedings will remain private.''
Shia was spotted leaving Twigs' home in East London to go food shopping this week.
The pair were first introduced whilst filming 'American Honey' in 2016.
Shia confirmed his marriage to 24-year-old actress Mia - who he met on the set of 'Nymphoniac' in 2015 - during a live television appearance on 'The Ellen DeGeneres Show' not long after the pair got married, saying: ''We're proud of it. It was love.''
And Shia - who has had several runnings with police since 2009 when he was charged with a misdemeanour for criminal trespassing shortly after his 21st birthday - admitted that getting hitched to Mia had changed his outlook on marriage.
He said: ''You always hear these people who are all cynical, like, 'Ah, man, once you get married everything changes'. But for the better though!''
Twigs - whose real name is Tahliah Debrett Barnett - was engaged to marry 'Twilight' actor Robert Pattinson ,33, but the pair called things off after three years together late last year.
An insider said that Robert was ''tired'' of being unable to spend time with his ex-fiancee.
They said: ''They were almost inseparable for their first two years together. But in recent months they have really started to drift apart and have been spending less and less time together.
''Rob is tired of it, has called off their engagement and told friends they have split. With so much -history between them, though, there are still strong feelings there. It's a difficult situation but things have become tough between them for some time and they both know they were no longer working as a couple.''
Neither Shia or Twigs have commented on their relationship status.