The former twosome, who reportedly split in September after two years together, were snapped holding hands on Fifth Avenue in NYC Sunday, where Liam graciously posed for pics with fans before strolling along with his ex-ladylove.
According to reports, Peazer and Payne called it quits because Liam's hectic schedule and the pressures of long-distance relationship proved too much for the pair to handle.
But the adorable duo seem to have sorted out their differences, as they appeared comfortable and content together on their afternoon outing.
The 24-year-old beauty looked trendy and chic in wedge sneakers, burgundy leather pants and a leopard-print coat, while her former beau kept it casual in jeans and a T-shirt.
An eyewitness tells E! News that, "Danielle seemed nervous around the cameras and fans. But Liam seemed protective over her. He kept taking her hand."
One Direction is performing tonight at New York City's Madison Square Gardens.
We'll keep our eyes pealed for Peazer sitting front row center.
Hey, it could happen!