Miley Cyrus is reportedly "very happy" after rekindling her romance with Liam Hemsworth.

Miley Cyrus

Miley Cyrus

Miley, 23, and Liam, 26 met on the set of 2010 movie 'The Last Song' and announced their engagement in June 2012 before splitting in September 2013.

They apparently recently decided to give things another go, and singer-turned-actress Miley is thrilled to be back with her beau.

A source said: "Miley is where she has wanted to be for the past two years. Back with Liam and very happy. Miley never wanted to split. Things just got so bad that they really needed the break."

Miley has even sparked rumours she is once again engaged to Liam, after wearing what looked like the diamond the actor gave her back in 2013.

But while the insider didn't comment on engagement claims, they did say there is no date set for potential nuptials.

The source told People.com: "Now reunited, Miley seems ecstatic. She loves her life and is excited about the future. She always loved her engagement ring and was very proud of it.

"There is no date. But they are back together and very happy."

Despite the rumours, Liam's brother Chris remained coy about the allegations during an interview on 'The Kyle and Jackie O Show'.

Asked if the pair were dating again, Chris said: "Not that I know of mate."