Page Six reported that the former 70s Show co-stars jetted off to a romantic getaway in Bali.
The couple shacked up at a five-star resort, which boast suites including "wooden four-poster beds, a sunken indoor bathtub and ultra-private pools."
While neither party wants to admit a relationship, sources says its reached a more serious level in recent weeks.
Meanwhile, Mila has adamantly denied the affair, even telling the August issue of British ELLE she's single.
“Listen, [Ashton and I] hang out. We've known each other for 15 years. We have mutual friends. We're comfortable with one another. That's it! There's no crazy love story, nothing more," she said.
That being said, it seems the Ted actress might be ripe for a romance. Mila told Interview magazine she wants to settle down in five years and revealed to Glamour she'd rather have love and a baby than a movie.
"I’ve never dated. I can say this honestly: I don’t know what it’s like to date," she told the magazine. "But also, how am I going to date? I’m not in one state long enough."