Yes, the pair – who costarred in the 2009 hit romantic comedy The Proposal – have been close friends for a decade.
And yes, the reigning Sexiest Man Alive, 34, and Best Actress Oscar Winner, 46, both split from their spouses within the past year.
But despite speculation that a romance is brewing in the wake of their New Year's Eve celebration, sources close to both stars tell PEOPLE that the stars' relationship is strictly platonic.
Any notion of a romance between Reynolds and Bullock "is ridiculous," says a source close to Reynolds. "They have been friends for 10 years and they celebrated New Year's with others. That's it. They really are just friends."
Adds Bullock's rep: "They all had a great time ringing in the New Year as they have in the past."
An observer at Bullock's Austin eatery, Bess Bistro, says there was no sign of sparks between the two when they were there on New Year's Eve.
Dining and dancing with a group of friends until midnight, "they were having a good time," says one party-goer. "They danced together. They ate together. They laughed a lot. But I didn't see any making out or anything."
The close friends have made no secret of their mutual admiration over the years. "She's this stunning, gorgeous woman – and she's the only one who forgets it," Reynolds told PEOPLE in 2009. Bullock returned the compliment: "I'm amazed by what he pulls off. And he smells good."