Ashlee Simpson dating Pete Wentz?

At the club for a pal's birthday, Simpson, 22, and Wentz, 27, got cozy in a semi-hidden booth, holding hands, gazing into each other's eyes and smooching in between Simpson's dance sessions with a group of girlfriends.

"They definitely weren't hiding the fact that they were together," said one onlooker. "They were making out a lot and they were pretty intense."

Wentz told PEOPLE in November that although "Ashlee is the sweetest girl ever," they were "just friends." And in February he told Rolling Stone: "Maybe in a different universe, we'd be some hot couple, but not in this one."

In other news, Ashlee Simpson has tapped a music legend to help her record her new album - The Cure rocker Robert Smith.

The pair are working together to create a new sound for the follow up to Simpson's first album I Am Me.

Pete Wentz claims the pair met when the 22-year-old singer was in London last year performing in West End music Chicago.

He says "I doubt I had anything to do with it, 'cause they were friends since she was performing in Chicago. But I definitely only have good things to say about Ash - I think the collaboration could be great."

By Fabien Montique posted time [ 2:23 PM]