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They have sparked speculation that their romance may be back on after being pictured putting on an ‘affectionate display’ in Australia’s Byron Bay over the New Year.

And it has now been claimed that Liam Hemsworth and his former fiancée Miley Cyrus have been planning their romantic reunion ‘for months’.

Sources from the pair’s ‘inner circle’ allegedly told TMZ that the exes have actually been ‘back in each other’s lives since the Fall’.

Back on? It has now been claimed that Liam Hemsworth and his former fiancée Miley Cyrus have been planning their romantic reunion ‘for months’

The duo have reportedly been texting and FaceTiming each other in recent months and Miley was reportedly willing to look after Liam’s dog, Dora, while he was recently out of town.

In November, the Australian actor and the provocative pop star’s love of dogs saw them come together for a good cause after it was revealed Miley helped her former fiancé adopt the puppy.

The gossip site added that Miley is still hesitant to use the ‘bf label’ for Liam but that the pair are ‘well beyond the friend zone’.

Pictured: Sources from the pair’s ‘inner circle’ allegedly told TMZ that the exes have been ‘back in each other’s lives since the Fall’. Seen together in Byron Bay at Falls Festival

Pictured: Sources from the pair’s ‘inner circle’ allegedly told TMZ that the exes have been ‘back in each other’s lives since the Fall’. Seen together in Byron Bay at Falls Festival

Puppy love: The duo have reportedly been texting and FaceTiming each other in recent months and Miley was reportedly willing to look after Liam’s dog, Dora, while he was out of town

Puppy love: The duo have reportedly been texting and FaceTiming each other in recent months and Miley was reportedly willing to look after Liam’s dog, Dora, while he was out of town

Squad: On Monday a witness told Daily Mail Australia that Miley and Liam, who were engaged for just over a year before parting ways in 2013, were seen being 'affectionate' at the annual festival

On Monday a witness told Daily Mail Australia that Miley and Liam, who were engaged for just over a year before parting ways in 2013, were seen being ‘affectionate’ at the annual Fall Festival in Byron Bay.

Few photographs have emerged of Miley at the festival, with event organisers apparently eager to ensure she enjoyed a degree of privacy throughout.

Neither has confirmed whether they have rekindled their romance, but it is understood the 23-year-old also spent New Year’s Eve with the actor and his family.

Miley is understood to have flown into Australia after spending Christmas with her family in the U.S, holing up in Liam’s brother, Chris Hemsworth’s Byron Bay home to ring in New Year.

Happy New Year: Miley is understood to have flown into Australia after spending Christmas with her family in the U.S, holing up in Liam's brother, Chris Hemsworth's Byron Bay home to ring in New Year

Happy New Year: Miley is understood to have flown into Australia after spending Christmas with her family in the U.S, holing up in Liam’s brother, Chris Hemsworth’s Byron Bay home to ring in New Year

Laying low: Few photographs have emerged of Miley at the festival, with event organisers apparently eager to ensure she enjoyed a degree of privacy throughout

Laying low: Few photographs have emerged of Miley at the festival, with event organisers apparently eager to ensure she enjoyed a degree of privacy throughout

‘She was here for New Year’s Eve, they had a party at Elsa’s house,’ a source told Daily Mail on Tuesday.

According to E! Online, the singer has returned to L.A. to gush about the actor and the time they spent together in Australia.

‘She had the time of her life being with him and his family,’ a source told the publication, adding that the star believes they will be able to pick up from where they left off following their split in 2014.

‘Miley has never gotten over Liam and always hoped they would get back together.

‘She definitely still loves him and wants to be with him,’ the source added, suggesting that Hunger Games Star Liam was just as interested.

Time off: According to E! Online, the singer has returned to L.A. to gush about the actor and the time they spent together in Australia

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