"It was a mutual decision," Kelly told E! on Thursday after news of her split surfaced.
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"We love each other very much. It just wasn't the right time for us and I think if we weren't as mature and adult as we are, then we could have gone down a road that wasn't really nice."
"We're still really, really good friends. It's just that we're not living in the same house. There's no dramatic story. I wish there was so I had something to tell people, but no ... It just happens in life."
Kelly's mum Sharon Osbourne backed her up during an appearance of TV show The Talk, when she had nothing but good things to say about her daughter's former fiancé.
"Matthew is a lovely guy. They had two great years together of fun and love, and for me, that's why engagements are so important," she said.
"Engagements are a test run, aren't they? And so it didn't work for whatever reason, but they are still good friends and will continue to be. It's just not right for them right now."
Sharon joked she was all set to help 29-year-old Kelly find a new man, telling the audience: "Let the auditions begin!"
Kelly and Matthew were last at a public event together on December 12, when they attended the amfAR Inspiration Gala in LA.
Over Christmas The Fashion Police commentator shared a picture of the couple in festive jumpers and told followers about how her caring partner.
She wrote: "I came home from a 12 hour day to find a home cooked meal, clean house & fresh sheets on my bed #WhenMenGetItRightTheyGetItRight #TrueLove!! "