The couple - who split in March after 10 months - have fuelled speculation they are an item again in the last few days after they were spotted kissing and cuddling at an Ed Sheeran show and riding the actor's motorcycle together, and insiders have insisted they are in a relationship after ''really good talks''.
A source confirmed to E!: ''They have never cut communication since they broke up. They just took a break because it was the best thing for them at that time, [but they] are seeing each other again.
''Katy and Orlando want this to work this time, so they are working on mending their relationship. They've had some really good talks and have a better understanding on their needs. Time will tell at this point, but [things are] looking very positive.
''When they went out in public, they were aware that people would start speculating that they were back on, and they are OK with that.
''They love each other and never stopped.''
It was previously claimed the pair called time on their relationship because Orlando, 40 - who has son Flynn, six, with ex-wife Miranda Kerr - wasn't ready to settle down.
A source said: ''Katy and Orlando had a great time together.
''It was a great healing process for Orlando following his divorce from Miranda. But Katy and Orlando discovered they were on different pages.
''Katy wants children and to get married, while Orlando has been there and done that.
''At 32, Katy doesn't want to waste any more time. It became a strain.''
Katy married comedian Russell Brand in 2010, but he filed for divorce in 2011.
The raven-haired beauty split with John Mayer in the past before rekindling their romance, and Orlando dated Kate Bosworth on and off for four years, but they ended things in 2006.
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