Recently, Miley sparked speculation she is set to wed, after the 23-year-old was spotted sporting her old engagement ring on Instagram.
Now, E! News reports that multiple sources have confirmed she and Liam are back together and their engagement is back on.
A source told the publication: "Miley came back to LA after spending the holidays with Liam. She had the time of her life being with him and his family."
"She feels like they could pick up right where they left off," they added. "Miley has never gotten over Liam and always hoped they would get back together. She doesn't know where it will go, but she definitely still loves him."
Miley and Liam first got engaged back in 2012. She had been dating the actor on/off for three years, before he finally proposed four years ago.
Over a year later, the couple confirmed they had split.
Despite their break up, Miley and Liam still spoke affectionately about each other interviews. While Miley insisted she and Liam were "still close", he said he doesn't think his feelings towards the 'Wrecking Ball' singer will ever change.
Miley and Liam first sparked rumours of a reunion after partying with each other in Australia over the New Year.
However, Liam's brother Chris Hemsworth seemed to dismiss such claims, insisting he had heard nothing about the couple rekindling their romance.
When asked if the former couple are dating on The Kyle and Jackie O Show, Chris said: "Not that I know of mate."
Although, he did add: "I would find out through the press. I find out last most of the time."
Both Miley and Liam are yet to confirm or comment on their relationship status.
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