Home And Away's Isabella Giovinazzo and co-star James Stewart spark dating rumours

Isabella Giovinazzo is rumoured to be dating her co-star James Stewart.

It's claimed the actors were 'cosying up' at a radio party in Queensland recently, with a guest saying James 'always had his arm around her'.

The event was the 1029 Hot Tomato Star Party at Jupiters Casino on the Gold Coast.

James, who plays Justin Morgan on the soap, was photographed at the party with his arm around Isabella, who is best known as Phoebe Nicholson.

The on-screen partners wore matching white ensembles and appeared comfortable in each other's company.

The pair were also spotted dining at an Italian restaurant in Sydney, and appeared very smitten during their evening out.

At one stage James, 41, snuck up behind Isabella, 26, and wrapped his arms around her.

Rumours first surfaced that the pair had entered a relationship in late 2016 after they were seen looking cozy on and off set.

A source close to the stars told the Daily Telegraph, they are both in the “best place they’ve been in a long time” with the blossoming romance only just taking flight. The source also revealed the couple have recently moved in together.

The rumours came just after it was reported Isabella split from her husband, filmmaker Charlie Ford, in September 2016. The two married in secret in 2015.

Stewart was previously engaged to Packed To The Rafters star Jessica Marais. The two separated in May 2015, and they currently share custody of their four-year-old daughter, Scout.

Jessica told InStyle Australia that she remains on good terms with her ex.

"Because he’s [Stewart] on Home And Away, which is all year round in Sydney, it makes sense for us to be based here and for me to be the one that travels because it gives her that stability of a place and a routine. Over the last few weeks he’s been working a lot more and I’ve had her more full-time and that shifts and changes,” the 31-year-old said.

Isabella and James have yet to comment on the relationship.