AceShowbiz - Niall Horan and Hailee Steinfeld reignited romance rumors after being spotted hanging out together at a Backstreet Boys concert over the weekend. However, it appears that the "Slow Hands" crooner and the 21-year-old songstress aren't officially dating yet.
A source close to the stars tells PEOPLE that Hailee isn't ready to start a new romance after breaking up with her longtime boyfriend Cameron Smoller recently. "She's not actively pursuing anything," so the source explains. "Niall is really into her but she's unsure if she wants to get into something new right away."
The source goes on saying that both Niall and Hailee are now happy spending time together as friends for now. "They've been friends for a long, long time and are very comfortable with each other," the source adds. "But it's nothing serious right now."
A second insider also notes that the two are simply "good friends," but there's no denying that they have a connection. "There's a lot of good connection between them and they're clearly attracted to each other," the source tells HollywoodLife.com. "Niall would love to take things to the next level, and he's made that clear to Hailee, but she doesn't want to get seriously involved right now."
But it doesn't close the opportunity for them to take their relationship to the next level. "She adores Niall, though, and when she feels the time is right, she would have no reservations about dating him," the source continues. "In the meantime, they're enjoying hanging out as friends."
Niall and Hailee first sparked dating rumors when they were seen hanging out together at London's West End production of "Hamilton" shortly after the new year. The One Direction member even attended a birthday party for Hailee's older brother, Griffin.
Hailee previously addressed the dating rumors, but she didn't give a clear answer. "I think sometimes it's hard for people in general to realize that there are boundaries to a person's life and personal life," she told Us Weekly.