Ashlee Simpson & Pete Wentz Engaged!

After two years of dating and much speculation about their relationship, Ashlee Simpson and Pete Wentz are getting married.

The couple announced the news on Wednesday. In a statement, Ashlee, said:

"We know there has been a lot of speculation recently about Pete and I, and we wanted our fans to be the first to know, because you guys are the best. Yes, we are thrilled to share that we are happily engaged. Thank you for all of your support and well wishes — it means the world to us. We consider this to be a very private matter, and we wanted to be the first to tell you and hear it straight from us."

Pete popped the question to his lady love two weeks ago after getting the thumbs-up from Ash's dad/manager, Joe Simpson.

"He doesn't look like it, but Pete is a very traditional guy, and he knows Joe is too," a source tells E! News. "He never would have asked her without Joe's permission."

As for Joe, he says he's "totally happy and so excited to have Pete as part of the family. We are blessed."

Also wishing couple all the best is Ashlee's ex, Ryan Cabrera, whom she dated from 2004-2005.

"That's very cool news. I wish them nothing but the best. I'm happy for them," the singer-songwriter said on Yo on E! Thursday morning.

Ashlee, 23, and the Fall Out Boy member started dating in the fall of 2006, when they were spotted kissing at a New York night club. One year later they were still going strong. Pete, 28, was quoted as saying, "It's crazy to be able to kiss your best friend. It's just a really awesome thing."

No date has been set yet for the lovebirds, but when they finally walk down the aisle, don't expect Ashlee to be rocking a dress designed by Pete, who runs Clandestine clothing.

"I would not even try to step in and design Ashlee's wedding dress," the bassist said last week. "I don't think she would want that. Thank God. Anyone who would want a wedding dress designed by me, I would not want to marry them."