The pair, who are said to have been dating for around a month, were pictured sharing a private moment at Vanity Fair's Oscars afterparty on Sunday night.
Dressed in a heavily beaded black gown and sporting flowers in her hair, 40-year-old Heidi was seen embracing 27-year-old Vito on the dancefloor of LA club 1 Oak, where the star-studded party was being held.
Heidi and Martin, who got together shortly after she filed for divorce from her husband Seal, went their separate ways in January after a year and a half together.
"They are no longer working together," said a source close to the German-born model. "Life is about timing. He was incredibly supportive and they were there for each other, but they're moving on now. They still have a great friendship."
"Martin was there for her during a challenging time in her life and it was something she will also be grateful for," added another friend.
Heidi and her former boyfriend Martin
Vito, the son of artist Julian Schnabel, is no stranger to dating A-list ladies who are older than him. The New York-born art dealer was romantically linked to 49-year-old Elle Macpherson in 2012 and in 2010 he dated actress Liv Tyler, who is nine years his senior.
Vito was also involved with 51-year-old Demi towards the end of 2012.
The pair reportedly first met at the spectacular 50thbirthday party Naomi Campbellthrew for her boyfriend Vladimir Doronin in India in November 2012. A source told the New York Post that the couple were getting cosy on the dancefloor.
In the following weeks the couple were said to have been "quietly spending time together", before he reportedly broke up with her at an event in Miami.
Vito's 62-year-old father is also proof that age doesn't matter when it comes to affairs of the heart, having just announced his engagement to 30-year-old former model May Andersen, with who he has a seven-month-old son called Shooter.