The couple, who have been dating for almost three years, have dodged multiple engagement rumors throughout their relationship.
In November 2008, the model, 27, and British actor, 33, shot down a report in the Australian media that they were getting married. Six months later, the two kept fans guessing when Kerr was spotted with a sparkler on her left ring finger, though reps at the time had no comment.
When the two recently spent Thanksgiving together in Morocco, Bloom told reporters he and Kerr were "just enjoying our time together now" when asked if they were getting married anytime soon.
"He's a sweetheart and that's all I'm gonna say," Kerr, who has talked about settling down and starting a family in the future, told PEOPLE in February 2008.
"My ideal situation would be to live on a farm in a solar-powered house with a hammock and a vegetable patch," she told Page Six Magazine in 2008. "When this is all over, that's where I'll be. I've always wanted kids, so someday, eventually, yes, it will happen."
The engagement news was first reported by Entertainment Tonight.
Reporting by JULIE JORDAN