Shia LaBeouf & Carey Mulligan Costarring Off-Screen Too?
08/25/2009 AT 10:50 AM EDT
Flaming the reports: the sight of the two of them cuddling and kissing Sunday afternoon at Extra Virgin, a sidewalk cafe in the heart of Greenwich Village.
British actress Mulligan, 24, was recently seen in Public Enemies, while LaBoeuf, 23, starred in the summer release Transformers: Revenge of the Fallen.
"They looked happy" said one source.
As for the status of their relationship, LaBoeuf's rep had no comment.