The former California governor stepped out for dinner in Santa Monica, Calif. with girlfriend Heather Milligan, and a source confirms to E! News the two are indeed dating and "have been together since the fall."
Although the burgeoning couple has been keeping a low profile and has yet to publicly open up about their relationship, our insider reveals the twosome rang in the New Year together in Las Vegas:
"They had a really great time. They ate dinner at Striphouse Steak Restaurant at Planet Hollywood."
Most recently, he confessed he still hopes "for a reconciliation" with his former wife while making the press rounds for his film, The Last Stand.
Schwarzenegger's rep did not respond to a request for comment.