Miley Cyrus is ''happier than she has been in years''.

The 'Wrecking Ball' hitmaker has had her ''ups and downs'' in her life but finally feels happy and settled with Liam Hemsworth.

A source told Entertainment Tonight: ''She and Liam think the rumors of their breakup are funny. Everything is fine between Miley and Liam. She does want people to know that any speculation that a breakup is about to happen, is wrong! Miley is happier than she has been in years. She's had her ups and downs and finally feels as if she's found herself and her purpose. She looks and feels healthier today. At this point, Liam is exactly who she wants in her life and they find every way possible to spend as much time together as they can. Even with their non-stop schedules.''

Meanwhile, it was previously revealed that Miley and Liam are ''in a great place'' and trying to focus on their relationship in private.

A source said: 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.

''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.''