The One Direction heartthrob met up with the reality TV star - half-sister of Kim Kardashian - in New York where they were both seen leaving the Ganservoort Hotel and later at Therapy, a gay bar in the city's Hell's Kitchen area.
Harry, Kendall and a few of their friends were very ''low-key'' at the club's Gays Gone Wild night on Saturday (07.12.13) and ''didn't make a huge deal about it''.
A source told UsMagazine.com the pair left when other people started to notice them and make a fuss, and they ''walked out when they played [One Direction's] 'What Makes You Beautiful.'''
The source added: ''He was holding Kendall's hand.''
The bar is a favourite of Harry's and he has been there on previous occasions when he's been in New York.
The insider added: ''Harry has actually been here a few times before. He's just a regular customer when he comes in.''
The venue was also a good choice for 19-year-old Harry and 18-year-old Kendall, as Therapy serves drinks to over 21s - the required age to consume alcohol in the US - but has a licence which allows it to let younger people in.
Although they have denied any romance, Harry is said to have taken Kendall for a meal on November 25 and was also spotted leaving the California home of Kendall's father, Bruce Jenner, a few days later.
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