The handsome Hunger Games actor was spotted partying with the 23-year-old Mexican beauty at a VIP club in Las Vegas at the weekend.
"They never left each other's sides," a source told Life & Style. "They were with a few people and spent a few minutes at the VIP DJ stage table. They then headed back to a more private VIP bungalow cabana near the pool."
They had drinks and talked in the bungalow. They left together with the rest of the group around 2 a.m," the insider added.
The pair were also seen the next day, meaning that 23-year-old Liam may be enjoying being single again – or maybe he is already off the market.
The rumour mill went into overdrive that he had split from fiancée Miley Cyrus over the weekend after the Wrecking Ball singer unfollowed the Australian star on Twitter.
Their official split closely followed on Monday. Spokespeople for both Miley and Liam confirmed the news to PEOPLE magazine that the couple had split after months of speculation.
Miley, 20, and 23-year-old Liam met on the set of The Last Song in 2010 and got engaged in May last year.
Earlier this year, the stars decided to postpone their nuptials. After deciding to delay the wedding, Miley was spotted alternately wearing and not wearing her 3.5-carat Neil Lane engagement ring.
They were last seen together in August for the LA premiere of actor Liam's latest film Paranoia.
Liam, who only joined Twitter in June, is still following his ex-fiancée on the microblogging website.