"Things slowly progressed," said a friend of Reese’s. "But it was never something she thought would happen from the start. She just kind of developed this little crush over time."

Jake is the first person the Oscar-winner has been linked to since she split from hubby Ryan Phillippe a few months ago.

In the past, Jake has been linked to Spider-Man star Kirsten Dunst as well as Natalie Portman.

Reese and Jake getting cosy? - April 6 2007
Hollywood’s single men will be disappointed to hear that Reese Witherspoon may already be off the market - having been spotted spending some quality time with her latest co-star, Jake Gyllenhaal.

The 31-year-old Oscar-winner, who split from her husband Ryan Phillippe five months ago, has been spotted hanging out with Jake since the pair finished work on their forthcoming CIA thriller, Rendition.

Despite going to great lengths to avoid being snapped together, the duo were spotted on March 23 dining with two other couples at LA hotspot Il Sole.

"They were cuddling," a witness told People magazine. "It looked very playful."

A source close to the actor also told the magazine: "In the last month, they’ve been spending a lot more time together. Jake really likes her and isn’t at all concerned that she has two kids."

The source also claims that the 26-year-old has already met Reese’s two children, Ava, seven, and three-year-old Deacon, in New York City.

Jake’s rep had no comment on the rumoured romance while Reese’s rep did not return calls.

Reese cleans out her closet - Mar 19 2007
Reese Witherspoon has quite literally been cleaning out her closet since her split from husband of seven years, Ryan Phillippe.

Appearing on the cover of April’s US edition of Harper’s Bazaar wearing Olivier Theyskens, Reese admitted that she’s been busy finding her own sense of style since becoming single, saying, "I recently put a big pile of clothes on the floor of my closet, and I looked at a lot of the stuff and thought, ’That’s not me at all! What was I thinking?’."

Looking back at some of her fashion mistakes over the past few years, she said, "[For Legally Blonde] I went through a pink phase like you wouldn’t believe. Then there was a Marni phase when I was doing Sweet Home Alabama that was out of control."

And it looks like Reese’s pals are set to benefit from her recent fashion makeover.

"If I have to say anything about myself, I’m a really good girlfriend. And I give away a lot of shoes. It’s really nice to be me. And it’s really nice to be my friend who has the same shoe size," she says.

But, despite her recent style transformation, the mother-of-two is keen to add that life isn’t always quite so glamorous, admitting that she spent her 30th birthday "playing Boggle and eating fried chicken."

"At this time in my life, it’s about spending time with my kids, really connecting with my friends. I’m very lucky. I have a really great life," she added.

Reese is top choice for Manny - Mar 1 2007
She may have been through a marriage break-up, but it doesn’t look like Reese Witherspoon’s job offers are drying up.

The blonde actress - who separated from her actor hubby Ryan Phillipe last year - is author Holly Peterson’s first choice for the film adaptation of her novel, The Manny.