updated 01/05/2011 AT 12:50 PM ET
•originally published 01/05/2011 AT 2:00 PM ET
Yes, the pair – who costarred in the 2009 hit romantic comedy The Proposal – have been close friends for a decade.
And yes, the reigning Sexiest Man Alive, 34, and Best Actress Oscar Winner, 46, both split from their spouses within the past year.
But despite speculation that a romance is brewing in the wake of their New Year’s Eve celebration, sources close to both stars tell PEOPLE that the stars’ relationship is strictly platonic.
Any notion of a romance between Reynolds and Bullock “is ridiculous,” says a source close to Reynolds. “They have been friends for 10 years and they celebrated New Year’s with others. That’s it. They really are just friends.”