The mom-of-one, 27, and DiCaprio reportedly got closer earlier this summer when they were seen at a nightclub opening in New York City — but the Oscar winner was still in a relationship with Morrone.
"Camila and Leo were constantly taking breaks to 'figure things out,' but in her mind they were not broken up," the insider said.
There are some whispers that Hadid and DiCaprio started seeing each other when he was still with Morrone, and their friends are divided over who is telling the truth. "Gigi and Camila share lots of mutual pals, and they're on Camila's side," the insider noted of the ladies who are both friendly with Kendall Jenner and Hailey Bieber.
As OK! previously reported, Hadid and DiCaprio made headlines when they were spotted at New York Fashion Week parties together. "They were sitting in the dining room area and were canoodling and having a fun night out with each other," another insider dished. "Gigi arrived at Casa Cipriani a while after Leo did. They like going there because they can be private and not worry about pictures being taken of them or people noticing them too much. They are having a good time together and Leo is very attracted to Gigi."
The insider spoke with Life & Style.