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The hunk, who separated from Sienna Miller few weeks ago, was seen with his former flame at London's new hotspot The Box.
A source says the couple was 'struggling to see each other' as Cole is traveling around the world for her job while the actor spends most of his time in Los Angeles.
A source moreover says that 'a decision was made to close down the project' and 'it's unlikely it will ever see the light of day.'
The 21-year-old beauty plans to stop walking on the catwalk for good in order to focus on her acting career.
Three of the fresh pictures from 'The Imaginarium of Doctor Parnassus' take a closer look at Heath Ledger, Lily Cole and Christopher Plummer, while the other one is a behind-the-scene pic.