Kate Hudson and Owen Wilson's romance heats up

"He seems very happy," says Owen's younger brother, actor Luke Wilson. "[Kate] is a very nice girl."

Hudson, 27, and Owen Wilson, 38, have been openly enjoying each other's company recently. In Australia, where Hudson was working on the movie Fool's Gold, the pair shared bike rides and walks on the beach.

"Owen has realized what a great thing he has," says the couple?s friend. "They're having fun, but things are definitely getting more serious."

Last year, just days after Kate Hudson announced her marriage was over, it was reported that she and her You, Me and Dupree co-star, Owen Wilson, were an item.

American magazine Us Weekly said at the time that Hudson and Wilson’s relationship developed when they began the publicity tour to promote the romantic comedy in June 2006. A source spilled , "This is not [just] a fling. Kate is crazy about him. Owen gives her so much attention, and she loves it!"

Wilson’s rep said in a statement at the time , "[Anything] that suggests that the separation of Ms. Hudson was caused by Mr. Wilson is absolutely false."

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