Source: Leo & Bar's Relationship 'Ran Its Course'

10/23/2007 at 02:00 PM EDT

Source: Leo & Bar's Relationship 'Ran Its Course'
Splash News
Leonardo DiCaprio and Israeli model Bar Refaeli have ended their relationship "on great terms," a source close to the couple tells PEOPLE.

"The relationship ran its course," says the source. "It's bad enough having a cross-country relationship, but it's obviously a lot more difficult trying to maintain a relationship across oceans, and across continents, when both of them are very busy. They ended on great terms. He's a great guy, and she's very sweet. These things happen. They had fun."

The couple's split comes amid recent reports of a breakup, and was made public after Refaeli was spotted with pro surfer Kelly Slater in Israel over the weekend.

DiCaprio, 32, and Refaeli, 22, began dating in the spring of 2006 and had tried to keep their romance low-profile. They were in the news this past March when they visited Jerusalem's Western Wall together. On that visit, members of DiCaprio's security team scuffled with photographers, and the couple had to be whisked away in a van.

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