Miley Cyrus and Liam Hemsworth are reportedly ''in a great place'' and trying to focus on their relationship in private.

Despite reports the couple - who split in 2013, before reconciling their romance three years ago - have called off their engagement, it's said they have simply decided to take a step back from the public eye and keep things ''low key''.

A source told E! News: They are truly in a great place right now.

''[They are] very much still together and have just been trying to be more private about their relationship.

''They have been spending a lot of their time being low-key in Nashville lately, and come home to Malibu often to spend time with family.''

Although they withdrawal from the public eye - and stalled wedding plans - led to reports they had broken up, it's said that marriage and a family isn't their priority right now.

The insider added: ''Wedding planning has been a continuous conversation over the years but they have not locked in any set plans.

''Their family would love for them to finally tie the knot, and are very excited about it, but no one is pushing them.

''Miley is very simplistic when it comes to her ideas and does not want things to be an ordeal. Both Miley and Liam want to have children and they both want to be married but aren't trying to rush the process.''

Speculation had mounted when the 25-year-old singer deleted everything off her Instagram account just days after Liam, 28, posted a joke about not being a dad on Twitter.

However, it's now been revealed the social media purge is actually the next step of her music career and image reinvention.

The source explained: ''Miley is working on new music and rebranding herself, hence why she deleted her Instagram photos. She is starting the process of a new music project and wants a clean slate.''