Kate Hudson

Kate Hudson & Owen Wilson Split

06/05/2007 at 06:30 AM EDT

Kate Hudson & Owen Wilson Split
Hudson (left) and Wilson
Carlos Diaz/INF; EMPICS/Landov

Kate Hudson

Kate Hudson

Owen Wilson

Owen Wilson

Kate Hudson and Owen Wilson have broken up, a source who knows the pair tells PEOPLE.

"They're still friends," says the source, adding that the two split just before Memorial Day weekend.

The cause of the breakup wasn't immediately known.

Wilson, 38, and Hudson, 28, who starred together in 2006's You, Me and Dupree, recently had become increasingly open about a relationship that began quietly last fall and developed across many time zones. They were spotted strolling the beach in Australia (where Hudson was filming Fool's Gold with Matthew McConaughey), nuzzling at a Santa Monica restaurant, kissing at Hudson's April 19 birthday in New York, and getting cozy on vacation in Hawaii.

Last month, Hudson joined Wilson at the Dallas premiere of his comedy The Wendell Baker Story and stepped out with him at a party after the film's LA premiere, where the couple held hands, stroked each other's backs and rocked out to classic rock tunes together.

Hudson, who split with husband Chris Robinson last August and is mother to 3-year-old Ryder, had won the approval of lifelong bachelor Wilson's family.

"He seems very happy," Owen's younger brother, actor Luke Wilson, told PEOPLE in April, while older brother Andrew Wilson called Hudson "the world's most beautiful tomboy ... She's a great person."

Reps for Hudson and Wilson declined to comment.

Additional reporting by JULIE JORDAN

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