updated 09/21/2011 AT 8:00 PM ET
•originally published 09/23/2011 AT 10:45 AM ET
“That s––t’s already started,” Ballas, 25, who recently split from American Idol alum Pia Toscano, told PEOPLE on Tuesday of rumblings that he and his Dancing with the Stars partner Cavallari are an item. “She is a sweetheart. We have a lot of fun. We laugh a lot. We’re getting along great.”
Cavallari, 24 – whose engagement to Chicago Bears star Jay Cutler just ended – has no problems with people speculating that she and Ballas have more going on than fancy footwork.