AceShowbiz -

Though she has previously denied rumors of her dating best friend Miley Cyrus' brother, Trace Cyrus, Demi Lovato is said to have a crush on him, and so does he. "They are pretty much just good friends - with maybe a little crushing going on. But they're hardly in the same place at the same time, so not much time for dating since they're both on tour. But they like each other!" says a source regarding the nature of the twosome's relationship.

According to another source, both Demi and Trace have been "hanging out a lot lately." Their outings include spending romantic nights watching DVDs at his house and catching "Transformers: Revenge of the Fallen" at Universal City Walk earlier this week. "From last Sunday up until yesterday when Trace had to catch a plane to London, they were hanging out every day," the source tells Radar Online.

Adding fuel to the romance rumors, E! News reports that Demi and Trace have been exchanging flirty messages at Twitter. When the Disney actress-singer tweeted, "@tracecyrus 5 days!!! :D :D :D," the Metro Station's member replied, "@ddlovato so soon! I'm so ready to get home to you."

Neither Demi nor Trace has addressed the report though. Their representatives also haven't commented on the matter just yet.